KUALA LUMPUR (March 24): Boustead Plantations Bhd reported a net profit of RM27.46 million for the fourth quarter ended Dec 31, 2020, compared with a net loss of RM172.73 million a year earlier, on higher palm product prices.

Earnings per share was 1.23 sen, versus a loss per share of 7.71 sen previously, the group’s bourse filing showed. 

The higher palm product prices also lifted quarterly revenue by 27.09% to RM227.63 million, from RM179.1 million a year ago.

On a quarter-on-quarter basis, Boustead Plantations’ net profit increased 52.78% from RM17.97 million, while revenue was up 10.67% from RM205.68 million. 

The group declared a second interim dividend of 0.5 sen, to be paid on April 28. 

For the full-year period, the group’s net profit surged 70.17% to RM42.95 million, from a net loss of RM144.01 million in the previous year, while revenue increased 32.2% to RM763.05 million from RM577.2 million.

The group said although global palm oil production is expected to recover in 2021, current inventories are still extremely low, keeping palm oil prices high for at least the first quarter of the year.

Boustead Plantations said production is expected to remain below potential in 2021 as labour shortage remains the key challenge for the industry.

“Barring any weather shocks, current crude palm oil (CPO) supply tightness is likely to ease in the second half of this year as production is expected to rise above the previous year’s level after healthy precipitation in 2020 and inventories are set to recover. 

“Any new changes in the import and export tax structures of consuming and producing countries and the global supply-demand dynamics of competing edible oils will continue to influence CPO prices,” it added. 

Shares of Boustead Plantations ended unchanged today at 58 sen, valuing the plantation company at RM1.31 billion. 

Source: The Edge