KUALA LUMPUR: Boustead Plantations Bhd's profits for the fourth quarter ended December 2017 fell 28 per cent to RM36.44 million from RM50.29 million a year earlier.
Revenue rose 11 per cent to RM218.16 million from RM196.65 million on improved crude palm oil prices and fresh fruit bunches output.
Previously, the planter posted a one-off gain of RM33.4 million from land sale.
Boustead Plantations in its filing to the stock exchange said profit was up in the Peninsular Malaysia and Sabah regions, by 41 per cent to RM108.1 million and 19 per cent to RM84.9 million respectively. But it was down by RM1 million to RM6.5 million in Sarawak.
For the full year of 2017, the group's net profit almost tripled to RM665.24 million, largely due to RM555 million one off-gain from sale of land parcels in Seberang Perai.
Meanwhile, revenue rose 7 per cent to RM760.10 million from RM707.88 million, a year ago.
Boustead Plantations declared a fourth interim dividend of 4 sen per share to be paid on March 27, bringing its full year payout to 19.5 sen per share.
This is much higher than 14.5 sen per share paid out in 2016.
Boustead Plantations vice chairman Tan Sri Lodin Wok Kamaruddin, in a statement, said the group, in 2017, experienced better crop production and higher CPO prices.
"Moving ahead, palm oil prices is expected to soften as a result of rising production, which is projected to outpace palm oil consumption," he said.
He added that increased soybean acreage in the US and heightened competition from Indonesia are also expected to put pressure on the palm oil markets.
"Despite these challenges, prospects remain bright for the group. In particular, our proposed acquisition of 11,600 hectares of plantation land in Sabah is expected to be completed by the second quarter of 2018, Lodin added.
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