Land disposal gains boost Boustead Plantations Q1 net profit

PETALING JAYA: Boustead Plantations Bhd's net profit for the first quarter ended March 31, 2016 grew almost sixfold to RM42.59 million from RM7.35 million a year ago due to RM34.6 million gains on disposal of land.
Revenue for the quarter rose 3.86% to RM136.98 million from RM131.89 million a year ago.
In a filing with Bursa Malaysia yesterday, the group said its fresh fruit bunch production during the quarter fell 13% to 185,205 tonnes from 211,674 tonnes due to El Nino, land disputes in Sarawak and labour shortage for tall palms.
"The average oil extraction rate of 21.5% and the kernel extraction rate of 4.5% were marginally lower than the same period last year," it said.
During the quarter, crude palm oil (CPO) registered an average selling price of RM2,267 a tonne, higher than the RM2,236 registered a year ago while palm kernel achieved an average price of RM1,907 a tonne.
The group declared a single-tier first interim dividend of 3 sen per share in respect of the financial year ending Dec 31, 2016, to be paid on June 28, 2016.
This year, the group expects its crop production to be affected to some extent by El Nino and uncertainties pertaining to the enforcement of its rights over certain estates in Sarawak.
"The group is encouraged by the bullish price trend during the first four months of the year. The uptrend is predicted to continue as CPO output is curbed by the El Nino dry weather conditions," it said.
"However, the effects of higher prices are expected to be moderated by low mineral crude oil prices which may curtail the use of CPO for biodiesel production. Windfall levy on CPO prices above threshold price and CPO export taxes are among the factors that are likely to counter the effects of higher prices to some extent," it added.