KUALA LUMPUR: Boustead Plantations Bhd expects crude palm oil prices to remain supportive for the second half of the year.
This would come with a relatively steady demand for palm oil from China, India and Pakistan, Boustead Plantations said in its results statement today.
“Global palm oil production for this year is estimated to be lower than last year due to a slowdown in the increase of mature areas, lack of replanting, reduced fertiliser application and shortage of workers.
“The uncertainty of Covid-19 recovery is also expected to exacerbate issues stemming from the labour shortage, as recruitment of new foreign workers remains restricted.”
The company added that despite the challenges, it remained focused on executing its transformation programme to improve operational efficiency and financial performance over the long term.
Boustead Plantations’ revenue rose to RM167 million in its second quarter ended June 30 2020 from RM124 million in the previous year’s corresponding quarter.
This was primarily due to higher palm product prices, it said.
As a result, profit from operations increased to RM19 million compared with a deficit of RM22 million in the same quarter last year.
Its pre-tax profit stood at RM5 million, compared with a deficit of RM35 million in the same quarter last year when excluding the one-off gain on disposal of land of RM120 million.
For the cumulative six-month period, the group’s profit from operations increased to RM37 million while pre-tax profit came in at RM6 million.
Its revenue was higher at RM330 million.