T
ECONOMIC LANDSCAPE
Throughout the year, 2015 presented
multiple challenges that affected the
global economy. The interest rate hike by
the US Federal Reserve and the dramatic
slowdown of the Chinese economy, not
to mention the rapid slump in Brent
crude oil prices, negatively impacted
crude palm oil (CPO) prices.
Despite the mild El Nino weather
phenomenon, CPO prices remained
sluggish as production continued to
outperform demand. Decreasing exports
as well as a narrow price differential
against competing vegetable oils caused
CPO prices to drop significantly reaching
a low of RM1,834 per metric tonne during
the financial year.
The economic ecosystem that influences
the palm oil sector is indeed a dynamic
one. During the year, Malaysia and
Indonesia jointly agreed to the set-up
of the Council of Palm Oil Producing
Countries to implement steps that
will benefit two of the world’s largest
producers of palm oil.
Theseefforts includecoordinationofpalm
oil production and stock management
with a view towards stabilising CPO
prices. Both nations have also agreed to
harmonise the standards of the Malaysian
and Indonesian Sustainable Palm Oil.
Dear Shareholder,
While we were faced with an undoubtedly
challenging year, Boustead Plantations
Berhad continued to build on our solid
foundation within the plantations sector.
The lower global commodity prices and
volatile economic environment impacted us;
nonetheless, we achieved a satisfactory
profit for the financial year under review.
Earnings
Per Share
4.9
13%
SEN
an n ual repo rt 2015
7
