KUALA LUMPUR: Boustead Plantations Bhd returned to the black in the third quarter (Q3) ended with a net profit of RM15.2 million against a net loss of RM352,000 posted in the same corresponding quarter last year.
The company's revenue was lower at RM202.5 million from RM240.2 million a year prior while earnings per share stood at 0.68 sen against loss per share of 0.02 sen last year.
BPlant said uts aerage crude palm oil (CPO) price in the third quarter stood at RM3,861 per tonne, down 6.0 per cent from RM4,089 per tonne in the same quarter last year while palm kernel (PK) average price declined by 16 per cent to RM2,101 per tonne.
Fresh fruit bunch (FFB) production for the quarter was 218,130 tonnes, a four per cent reduction from 227,335 tonnes in the same quarter last year.
Nevertheless, yield per hectare (Ha) improved to 3.6 tonnes per Ha, compared with 3.4 tonnes per Ha in last year's corresponding quarter due to a reduction in past prime mature areas as a result of ongoing replanting activities.
The oil extraction rate (OER) increased to 21.0 per cent from 20.5 per cent in the same quarter last year.
For the first nine months ended Sept 30, 2023, Boustead posted a net profit of RM14.9 million, down from RM508.02 million while revenue fell 33.9 per cent to RM603.5 million from RM913.4 million.
BPlant acting chief executive officer Fahmy Ismail said amid challenging conditions, the group was able to deliver a stronger performance in the quarter under review as a result of improved OER, reduced operating costs and favourable impact of FFB valuation.
Fahmy said the increase in output was also attributable to better weather conditions coupled with the return of a higher number of foreign workers.
"However, this may be moderated moving forward due to seasonal fluctuations and the prevalence of frequent intermittent rainfall.
"Looking ahead to 2024, despite the El Nino weather phenomenon, Malaysia's palm oil production is projected to rise on the back of improved workforce and increasing maturity of palm trees available for harvesting.
"The potential impact of dry weather conditions associated with El Nino on Malaysian palm trees is also expected to be relatively mild with the arrival of the monsoon season," he said.