KUALA LUMPUR, Feb 21 — Boustead Plantations Bhd’s net profit surged 462 per cent to RM241.29 million in the financial year ended Dec 31, 2021 (FY2021) from RM42.95 million previously, boosted by stronger crude palm oil (CPO) prices.
Revenue jumped 38 per cent to RM1.05 billion, the highest since its listing in 2014 compared to RM763.05 million previously.
In a filing with Bursa Malaysia today, it said the highest monthly average CPO price of RM5,159 per tonne was recorded in November 2021 with palm kernel’s (PK) average price of RM4,139 per tonne.
Overall, CPO’s average selling price increased by 54 per cent to RM4,341 per tonne from the previous year’s RM2,811 per tonne, while PK’s average price of RM2,922 per tonne was higher than FY2020’s RM1,628 per tonne.
It said 2021’s fresh fruit bunches (FFB) production of 923,471 tonnes was lower than the output a year before of 1.01 million tonnes.
By region, Peninsular Malaysia achieved a segment profit of RM185.3 million, an increase of RM98.5 million from a profit of RM86.8 million previously.
Sabah region recorded a segment profit of RM188.7 million, surpassing FY2020’s RM60.6 million, while Sarawak region’s segment profit of RM16.6 million improved significantly compared to a loss of RM8 million previously.
For the fourth quarter (Q4) of FY2021, net profit rose to RM85.14 million from RM27.46 million, on the back of revenue of RM341.50 million from RM227.62 million.
Average CPO price for Q4 of RM5,044 per tonne was 52 per cent higher than that of RM3,324 per tonne recorded in the last quarter of FY2020.
PK’s average price soared 92 per cent to RM3,855 per tonne versus RM1,852 per tonne previously, while FFB production for the quarter of 248,328 tonnes was marginally higher than the output in Q4 FY2020 of 247,693 tonnes.
Going forward, the palm oil price is expected to maintain trading at a higher price in view of prolonged labour shortage and weaker production due to the recent heavy rainfalls.
Boustead Plantations projected Malaysia’s end stock for Q1 2022 to stay at a low level due to weaker production.
‘’The current La Nina in South America has severely impacted the production of soybean. Recently, the government of Indonesia has implemented the domestic market obligation and domestic price obligation while China is expected to replenish its low stock after the Chinese New Year festive season.
‘’The above factors will contribute to tight supply and ease the impact on palm oil prices,’’ it noted.
In a separate filing, Boustead Plantations announced a fourth interim dividend of 4.0 sen for FY2021.
The dividend will be paid on March 22, 2022 to shareholders registered in the Register of Members at the close of business on March 11, 2022.