Written by Surin Murugiah
Tuesday, 24 August 2010 12:15
KUALA LUMPUR: Boustead Holdings Bhd’s net profit for the second quarter (2Q) ended June 30, 2010 surged 212% to RM146.5 million from RM46.9 million a year ago, mainly due to stronger palm oil prices and higher sales volume.
Its revenue for the quarter increased to RM1.42 billion from RM1.28 billion in 2009, with earnings per share (EPS) of 15.68 sen.
Boustead declared a second interim single tier dividend of 10 sen per share.
For the six months ended June 30, Boustead’s net profit jumped to RM236.7 million from RM107.8 million, on the back of a 20% increase in revenue to RM2.98 billion from RM2.49 billion in 2009. EPS came in at 25.45 sen.
In a statement yesterday, Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said most of its divisions had performed satisfactorily and had marked improvements compared with the previous financial year.
“Coupled with this, our focus on improving efficiencies and strengthening organic growth has indeed proved viable,” he said.
Lodin said the plantation division registered a significant increase in profit mainly due to positive crude palm oil (CPO) prices, while Boustead’s finance and investment division was the highest profit contributor for the six-month period, delivering a profit of RM105 million.
“The primary contributing factor was the recognition of gains from the disposal of BH Insurance Bhd for RM75 million. Furthermore, the improved results from the Affin Group and interest savings from Boustead’s level contributed to the division’s bottom line,” he said.
The heavy industries division closed the six-month period with a lower profit of RM49 million, compared with RM64 million during the same period last year, mainly due to lower progress billings.
The trading division’s profit for the first six months of 2010, totalling RM33 million, was a significant improvement from RM7.2 million for the same period last year, due to increase in sales volume driven by BH Petrol.
The property division’s profit of RM31 million for the six month period saw a decrease compared with RM40 million in the same period in 2009 due to a decline in contribution from property development activity, while the manufacturing and services division recorded a RM10 million profit.
Lodin said Boustead was bullish on the prospects ahead as the Malaysian economy was expected to fare much better in the second half of the financial year.
“Our divisions are at the forefront of the Malaysian economy and we expect to ride on this positive sentiment,” he said.
“In addition, we are optimistic of CPO prices trending upwards over the next few months due to adverse weather conditions, thinning supply and an increase in demand, especially in traditional markets around the world.”
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