PETALING JAYA: Boustead Plantations Bhd has delivered a net profit of RM79.23mil for its second quarter ended June 30, compared with a net loss of RM22.24mil in the previous year’s corresponding quarter.
The improved results were largely due to a gain on disposal of plantation land amounting to RM120mil. Revenue for the quarter stood at RM123.95mil from RM141.75mil previously.
For the first six months, the group recorded a net profit of RM63.03mil compared with a net loss of RM16.98mil in the same period of the previous year.
Revenue reduced to RM258.86mil from RM296.36mil previously.
The average crude palm oil (CPO) selling price for the six-month period was RM2,003 per tonne, down by 18% compared with the same period last year.
The average palm kernel price declined by 40% to RM1,202 per tonne. Meanwhile, fresh fruit bunch (FFB) production for the period grew 13% to 488,198 per tonne. The average oil extraction rate increased to 21.4%, while the average kernel extraction rate remained stable at 4.4%.
Boustead Plantations said the group’s profitability hinged mainly on FFB crop production and selling prices.
“Palm oil prices are expected to hover around the current range before recovering towards the year-end amidst uncertainties relating to the US-China trade war.
“Although the gain on disposal of land in Seberang Perai Utara contributed to the group’s profit, the expected weak prices of palm products, the challenges of the Sarawak operations and the newly acquired estates will influence performance for the rest of the year, ” said Boustead Plantations.