4Q20: Strong Finish; Benefited From High CPO ASP25 March 2021
Boustead Plantations catat untung bersih RM42.95 juta bagi tahun kewangan 202025 March 2021
BOUSTEAD Plantations Bhd stated higher palm oil product prices enabled it to make a net profit of RM27.46 million for its fourth quarter ended Dec 31, 2020 (4Q20), which is 116% higher year-on-year (YoY) from a net loss of RM172.73 million it recorded for the same period in 2019.
Revenue for the quarter rose 27% YoY on the back of pricing power the company enjoyed in the period.
CEO Ibrahim Abdul Majid expects crop production and crude palm oil (CPO) price will continue to underpin the group’s performance.
“While global palm oil production is set to see a recovery in 2021, the current tight palm oil inventories are expected to shore up CPO prices in 1Q.
“The tight supply could potentially ease in the second half of the year, with production expected to increase above the previous year’s level as inventories recover,” he stated in a statement yesterday.
He added that the tight supply in the oil is dependent on several factors, including weather conditions, the extent of crop losses and whether the current shortage of workers will worsen if new restrictions are implemented.
“CPO prices will be influenced by changes in the import and export tax structures of consuming and producing countries, as well as global supply-demand dynamics of competing edible oils.
“The government’s Covid-19 vaccination programme underway augurs well for plantation operations to return to normalcy,” he added.
The average CPO selling price has increased from RM2,446 per tonne in 4Q19 to RM3,324 per tonne in 4Q20, while the average palm kernel price was also higher at RM2,003 per metric tonne, up by 42% YoY.
The group’s fresh fruit bunches production for the period came in at 247,693 tonnes, with yield improving to 3.7 tonnes per hectare (ha) from 3.5 tonnes per ha, while the average oil extraction rate and kernel extraction rate stood at 21.1% and 4.2% respectively.
For the financial year 2020 (FY20), the group recorded a net profit of RM42.95 million versus a net loss of RM144.01 million in FY19, as revenue rose to RM763.05 million from RM577.2 million in FY19.
Boustead Plantations declared a second interim single-tier dividend of 0.5 sen per share, payable on April 28, 2021.
Source: The Malaysian Reserve