KUALA LUMPUR: Boustead Plantations Bhd (BPB) marked a successful turnaround with a net profit of RM42.95 million for the year ended December 31, 2020 (FY20) from a net loss of RM144 million recorded in FY19.
Its revenue increased 32.2 per cent to RM763.05 million from RM577.2 million previously.
In a statement today, BPB said this was achieved on the back of better palm product selling prices, with profit from operations increasing to RM63 million.
Average crude palm oil (CPO) selling price increased to RM3,324 per tonne in the fourth quarter (Q4) FY20, 36 per cent higher from RM2,446 per tonne in last year’s corresponding quarter.
Average palm kernel price was also higher at RM2,003 per tonne, reflecting a 42 per cent increase.
Fresh fruit bunches (FFB) production for the quarter came in at 247,693 tonnes.
The company said as a result of operational efficiencies, FFB yield had improved from 3.5 tonnes per ha to 3.7 tonnes per ha.
Average oil extraction rate and kernel extraction rate stood at 21.1 per cent and 4.2 per cent respectively.
For Q4, BPB registered a net profit of RM27.46 million versus a net loss of RM172.73 million in the same quarter in FY19.
Revenue increased 27.1 per cent to RM227.62 million from RM179.1 million.
Boustead Plantations declared a second interim single-tier dividend of 0.5 sen per share for FY20.
The dividend will be paid on April 28 to shareholders on the register as at April 8.
Boustead Plantations chief executive officer Ibrahim Abdul Majid said crop production and CPO prices would continue to underpin its performance.
“While production is set to see a recovery in 2021, the current tight palm oil inventories are expected to shore up CPO prices for the first quarter of the year.
“The tight supply could potentially ease in the second half of the year, with production expected to increase above the previous year’s level as inventories recover.”
He added that this was dependent on several factors, including weather conditions, the extent of crop losses and whether the current shortage of workers would worsen if new restrictions were implemented.
“CPO prices will also continue to be influenced by changes in the import and export tax structures of consuming and producing countries, as well as global supply-demand dynamics of competing edible oils,” he said.