KUALA LUMPUR, Nov 22 — Boustead Plantations Bhd posted a net loss of RM21.90 million in the third quarter ended September 30, 2018 against a net profit of RM557.66 million amid market conditions, including a substantial drop in crude palm oil (CPO) prices.
Revenue was lower at RM131.09 million versus RM183.43 million previously, it said in a filing with Bursa Malaysia.
“The industry continues to be impacted by declining palm product prices and weaker demand, as the purchasing power of India fell along with the depreciation of its currency against the US dollar.
“The trade war between the US and China also led to lower soybean oil prices, which further depressed CPO prices,” it said.
It said soft CPO prices were expected to persist for the remainder of the year, given the high palm oil inventories and slow export growth.
The forecast of bumper soybean production in the 2018/2019 growing season in Brazil is also expected to put further pressure on CPO prices.
“However, over the long-term, the group is optimistic that it will be able to deliver sustained earnings as crop production improves, particularly with contributions from the recently acquired Pertama estates,” it added.
The company declared a third interim dividend of two sen per share for the financial year ending December 31, 2018. The dividend will be paid on Jan 4, 2019 to shareholders on the register as at December 7, 2018. — Bernama
