KUALA LUMPUR, March 24 — Boustead Plantations Bhd (BPB) has returned to the black with a net profit of RM42.95 million for the financial year ended December 31, 2020 (FY20) compared with a net loss of RM144 million in FY19.

Revenue rose to RM763.04 million from RM577.2 million previously, it said in a filing with Bursa Malaysia today.

BPB said Peninsular Malaysia region achieved a segment profit of RM86.8 million for the year, an increase of RM50.9 million from a profit of RM35.9 million for last year.

The company said the higher profit was in line with the region’s increase in fresh fruit bunches crop for the year of 390,775 tonnes compared to 373,930 tonnes in 2019 as well as the higher palm product prices.

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Furthermore, the Sabah region recorded a segment profit of RM60.6 million for the year against a loss of RM36.4 million in 2019.

“FFB production of 506,253 tonnes was higher compared to 494,343 tonnes last year. Higher selling prices was the main reason for the improved performance,” it said.

Meanwhile Sarawak region’s segment loss of RM8.0 million was 62 per cent lower than last year loss of RM21.3 million.

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In a separate statement, BPB chief executive officer Ibrahim Abdul Majid said crop production and crude palm oil (CPO) prices will continue to underpin the group’s performance.

He said 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 for the first quarter of the year.

“The tight supply could potentially ease in the second half, with production expected to increase above the previous year’s level as inventories recover,” he said.

“This 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.

He said CPO prices will continue to 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.

“Nevertheless, with the government’s Covid-19 vaccination programme currently underway in phases, this certainly augurs well for plantation operations to return to normalcy,” he said. — Bernama