KUALA LUMPUR, Aug 22 — Boustead Plantations Bhd returned to the black in the second quarter ended June 30, 2019 (Q219) with a net profit of RM79.23 million against a net loss of RM22.24 million in the same quarter last year.
In a filing with Bursa Malaysia, the company said its revenue declined to RM123.95 million from RM141.75 million due to a significant decline in the prices of palm products but was cushioned to some extent by better crop production.
In a separate statement, Boustead Plantation said average crude palm oil (CPO) selling price for the six-month period was RM2,003 per tonne, down 18 per cent compared with the same period last year, while average palm kernel price declined 40 per cent to RM1,202 per tonne.
“Fresh fruit bunches production for the period grew 13 per cent to 488,198 per tonne, while average oil extraction rate increased to 21.4 per cent, while average kernel extraction rate remained stable at 4.4 per cent,” the company said.
For the period under review, the company benefitted from gains on the disposal of a plantation land, enabling it to deliver improved earnings.
“However, the company was impacted by the significant decline in palm product prices, which continues to persist,” it said.
Boustead said even though CPO prices are expected to hover in the current range, there could be a potential price recovery towards year-end amidst uncertainties arising from the ongoing trade war between the US and China, which may bode well for the company.
“In tandem with continuous productivity improvements, Boustead Plantations remains focused on enhancing operational efficiencies in order to ensure our long-term sustainability,” it added. — Bernama
