Boustead Holdings Berhad (BHB) recorded an improved performance for its second quarter ended 30 June 2017, with a profit after tax (PAT) of RM127 million compared with RM41 million in the preceding quarter. Profit before tax came in at RM162 million while revenue stood at RM2.4 billion.
For its first six months ended 30 June 2017, the Group recorded a PAT of RM168 million compared with RM311 million in the previous year’s corresponding period. However, last year’s higher PAT was mainly attributable to gains realised on divestment of an associate company and disposal of lands.
Tan Sri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “Amidst a tough economic climate, we are pleased to note that the Group continues to deliver sustained results. This is indeed testament to our resilient nature and our diversified core business streams, which have enabled the Group to push forward and maintain our momentum.”
“In line with this and as part of our commitment to delivering shareholder value, we have declared a second interim dividend of 3 sen per share for the financial year ending 31 December 2017. This will be paid on 28 September 2017 to shareholders on the register as at 18 September 2017.”
The Plantation Division was the key contributor for the first half the year, with a profit of RM86 million. This was lower than the previous year’s profit, which was higher mainly due to the gains realised on disposal of land. Excluding this, the Division’s operating profit was higher as a result of increased palm product prices, improved crop production and lower finance cost. Average crude palm oil selling price for the first half of the year was RM2,969 per metric tonne (MT), up by 22% from the corresponding period. Fresh fruit bunches (FFB) production improved by 10% to 440,075 MT, largely due to improvement in yields post El-Nino.
The Trading & Industrial Division posted a lower profit of RM47 million. This was mainly attributable to a stockholding loss incurred by Boustead Petroleum Marketing Sdn Bhd.
The Heavy Industries Division marked an improvement with a profit of RM46 million for the first six months, compared with a deficit in the previous year’s corresponding period. This was achieved on the back of better contributions from Boustead Naval Shipyard, which made good progress on the Littoral Combat Ship project and other ship repair projects, as well as recognising income from the new Littoral Mission Ship project. MHS Aviation also contributed to the Division’s stronger results.
The Finance & Investment registered a higher profit of RM41 million for the six-month period. This was driven by lower finance cost arising from reduced borrowings from Right issue proceeds. In addition, contributions from Affin Holdings also improved, arising from increased net interest income, other operating income and Islamic banking income.
The Pharmaceutical Division recorded a lower profit of RM29 million for the first half of the year, which was impacted by the temporary closure of certain production lines for preparatory works to facilitate the commercialisation of new products, resulting in lower production by the Division’s manufacturing facilities for the period.
Meanwhile, the Property Division posted a deficit of RM15 million for the first six months. This was mainly attributable to start-up costs for MyTOWN Shopping Centre.