Tuesday 24 August 2010

Plantations, banking boost Boustead earnings in Q2


Plantations, banking boost Boustead earnings in Q2
Published: 2010/08/24

CONGLOMERATE Boustead Holdings Bhd (2771)has tripled its second quarter net profit, driven mainly by its plantation and banking businesses.

It also doubled its dividend for the quarter to 10 sen a share, bringing the total payout for the first six months to 15 sen a share from 10 sen a year ago.

Boustead, controlled by Lembaga Tabung Angkatan Tentera, reported a net profit of RM146.5 million for the April-June quarter, up from RM46.9 million in the same period a year ago.

Revenue for the three-month period was 12 per cent higher at RM1.42 billion from RM1.27 billion in 2009.
Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said most of its divisions have performed satisfactorily.

"We have marked improvements compared with the previous financial year," he said in a statement yesterday.

Cumulatively, the group doubled its net profit to RM266 million for the first six months compared with RM131 million last year.

Revenue for the first half of the year was 20 per cent higher at RM3 billion.

Leading the way for the six-month period was the plantation division which registered a significant increase in profit of RM92 million from RM34 million in 2009.

"The increase was primarily due to positive crude palm oil (CPO) prices," he said.

The finance and investment division was the highest profit contributor for the six-month period delivering a profit of RM105 million.

This resulted in an increase of RM95 million from 2009.

"The primary contributing factor was the recognition of gains from the disposal of BH Insurance Bhd for RM75 million," he said.

Furthermore, improved results from the Affin Group and interest savings from Boustead Holdings' level contributed to the division's bottom line.

Its other divisions such as heavy industries conversely closed the six months with a lower profit of RM49 million, compared with RM64 million during the same period last year. This was mainly due to lower progress billings.

The group is bullish on prospects as the Malaysian economy is 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.

Boustead is optimistic of CPO prices rising over the next few months due to adverse weather conditions, thinning supply and an increase in demand, especially in traditional markets around the world



Read more: Plantations, banking boost Boustead earnings in Q2 http://www.btimes.com.my/Current_News/BTIMES/articles/bouse-2/Article/#ixzz0xTwFZmdI

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