Latest Quarterly Results

Quarterly Report For The Financial Period Ended 30 June 2017

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Unaudited Condensed Statement Of Consolidated Comprehensive Income

Unaudited Condensed Consolidated Statement Of Financial Position

Performance Review

For the second quarter of 2017, the Group achieved an unaudited pre-tax profit of RM28.7 million as compared with RM 106.9 million for the corresponding quarter last year. The profit declined by 73% mainly because of the gain on disposal of plantation land included in 2016 which amounted to RM89.6 million. Better FFB production and CPO prices contributed positively to the current quarter's profit.

For the first half-year of 2017, the Group's unaudited pre-tax profit of RM85.8 million was down by 43% from the corresponding period in 2016. Excluding the gain on disposal of plantation land of RM124.2 million, the profit was an improvement of 217% from 2016. The main contributing factors were the sturdy palm product prices and lower interest expense.

FFB production for the six-month period increased by 10% to 440,075 MT. The crop uptrend was largely attributed to improvement in yields post El-Nino. OER averaged at 20.8% as compared with 21.4% for first half of 2016. The average KER of 4.3% was marginally behind the rate for last year.

CPO achieved an average selling price of RM2,969 per MT for the six-month period this year, an increase of RM545 per MT or 22% from RM2,424 per MT from the corresponding period last year whilst PK achieved an average price of RM2,620 per MT, up by RM500 per MT or 24%

Peninsular Malaysia Region

Peninsular Malaysia region achieved a segment profit of RM45.4 million as compared with RM22.1 million for the six-month period ended 30 June 2016. The increase in profit of RM23.3 million or 105% was mainly attributed to improved selling prices of palm products. The region's FFB crop of 186,260 MT was up from 2016 by 9%.

Sabah region

Sabah region achieved a higher segment profit of RM41.1 million, up by 132% from RM17.7 million profit for the corresponding period last year. FFB crop increased by 15% to 189,690 MT due to crop uptrend despite the shortage of skilled harvesters for tall palms and unfavourable weather.

Sarawak region

Sarawak region registered a segment profit of RM6.2 million as compared with a loss of RM1.9 million for the six-month period ended 30 June 2016. The turnaround in the results was mainly contributed by better selling prices of palm products. The region produced 64,125 MT of FFB, up 3% from the same period last year.

Prospects for Rest of the Year

The Group's profitability is dependent on the price direction of CPO and crop production. FFB yields are improving in Peninsular Malaysia and Sabah regions but labour shortage coupled with difficult ground conditions in Sarawak may hamper crop production.

During the second quarter of 2017, lower CPO inventory and increased palm oil demand for Ramadan and Eid festivals helped to lend support to the price of CPO. The downward pressure on prices in the second half year is very likely amid slower demand from the traditional markets, projected increase in CPO production and reduction in biodiesel production in Indonesia. The price direction of palm oil will also be influenced by soybean production in the United States where lower yields could widen CPO discount to soybean oil thus improving its appeal in price sensitive markets.

Boustead Plantations Berhad
Please read our General Disclaimer & Warning carefully.
Use of this Website constitutes acceptance of the Terms of Website Use.
© 2015 Boustead Plantations Berhad . All right reserved.