KUALA LUMPUR: Boustead Plantations Bhd (BPB) returned to the black with a net profit of RM28.72 million in the first-nine months ended September 30, 2019, from a net loss of RM38.88 million a year ago.
In an exchange filing today, BPB said the significant increase in earnings mainly contributed by the gain on disposal of Seberang Perai Utara land of RM119.5 million.
Revenue for the period eased 6.87 per cent to RM398.10 million from RM427.45 million recorded previously.
BPB’s net loss in the third-quarter (Q3) ended September 30, 2019, widened to RM34.31 million from a net loss of RM21.90 million, while revenue rose 6.2 per cent to RM139.24 million from RM131.10 million.
In a separate statement, BPB said lower earnings were due to the continued impact of the decline in palm product prices, coupled with higher amortisation and finance costs.
Average crude palm oil (CPO) selling price for the nine-month period was RM2,011 per metric tonne (MT), down by 16 per cent compared with the same period last year.
Average palm kernel price declined by 39 per cent to RM1,179 per MT.
Meanwhile, fresh fruit bunches production for the period grew by 10 per cent to 727,771 MT. Average oil extraction rate increased to 21.6 per cent, while average kernel extraction rate remained stable at 4.4 per cent.
The group’s prospects for the rest of the year will be much driven by CPO price, crop production and the group’s transformation programme.
It added the transformation programme will focus on yield improvement, prudent cost management and operational efficiency to enhance profitability.