KUALA LUMPUR – Boustead Plantations Bhd posted a net profit of RM17.97 million in its third quarter ended September 30, compared with a net loss of RM34.31 million in the same period last year.
Revenue surged 48% to RM205.68 million from RM139.24 million due to improved prices of palm products, which led to a profit from operations of RM40.3 million.
In a filing to Bursa Malaysia today, it said crude palm oil (CPO) realised an average selling price of RM2,772 per tonne, surpassing last year’s corresponding quarter of RM2,026 per tonne by RM746 per tonne or 37%.
Meanwhile, palm kernel's (PK) average price surged by 30% or RM343 per tonne to RM1,481 per tonne in Q3, while fresh fruit bunch (FFB) production rose to 273,625 tonnes from 239,572 tonnes in Q3 2019.
Boustead Plantations said the group’s prospect for the rest of the year will be much driven by the CPO price, crop production and the group’s successful execution of the transformation programme.
“Our transformation programme is progressing well and despite some disruption to our productivity improvement initiatives due to restrictions during the pandemic, we are on track to achieve our objectives,” it said.
The company said the recent downward revision of crop estimates for soybean, sunflower seed and other oilseeds had triggered heavy buying and elevated the CPO price to the RM3,000 zone.
Hence, it expects CPO prices for the rest of the year to remain supportive with steady demand for palm oil seen from China, India, Europe, and Pakistan.
The strong global demand and lower-than-expected production will keep Malaysian palm oil inventories extremely tight, it added.
“Weather developments are becoming a major determining factor for CPO and other vegetable oil prices in the remaining quarter of this year particularly with the current La Nina weather pattern,” it said.
The surge in global Covid-19 cases may need to be closely watched as this could significantly reduce global demand, particularly from the hotels, restaurants and catering sectors, it added. – Bernama, November 23, 2020
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