KUALA LUMPUR: Higher palm product prices saw Boustead Plantations Bhd posting net profit of RM12.22mil in the first quarter ended March 31,2021.

Announcing the stronger set of financial results yesterday, the group said it expects the current high crude palm oil (CPO) prices will contribute positively to earnings this year.

Boustead Plantations said the first-quarter net profit was in stark contrast with a net loss of RM9.55mil a year ago.

Its revenue increased by 5.68% to RM171.94mil from RM162.69mil. Earnings per share were 0.55 sen compared with loss per share of 0.43 sen previously.

It declared a dividend of 0.3 sen a share, which will be paid on June 30,2021 to shareholders on the register as at June 11.

“The group’s strong results were primarily attributable to higher palm product prices. Average CPO selling price increased to RM3,751 per tonne, reflecting an increase of RM958 or 34% from RM2,793 per tonne in the same quarter last year.

“Average palm kernel price was also higher at RM2,520 per tonne, up by RM820 or 48%, ” it said in a statement.

Boustead Plantations said fresh fruit bunches (FFB) production for the quarter was 180,165 tonnes while FFB yield came in at 2.6 tonnes per hectare.

Average oil extraction rate and kernel extraction rate stood at 20.3% and 4.0%, respectively.

Chief executive officer Ibrahim Abdul Majid said the group was pleased to maintain its positive momentum to deliver improved results for the first quarter.

“Moving forward, the group’s performance will continue to be driven by crop production and CPO prices.

“We are optimistic the current high CPO prices will contribute positively to the group’s earnings this year, although this may be moderated by lower production due to the existing labour shortage in the plantation industry, ” he said.

Source: The Star