Boustead Records PAT of RM67.7 million for Q2
Maintains Dividend Pay-out of 7.5 sen
KUALA LUMPUR, August 20, 2014 – Boustead Holdings Berhad (Boustead) recorded a profit after tax (PAT) of RM67.7 million for its second quarter ended 30 June 2014. Profit before tax (PBT) for the Group was RM109.9 million, signifying an 18% increase compared with the previous year’s corresponding quarter.
For the half-year period, the Group registered a PAT of RM159.1 million and a PBT of RM243.2 million on the back of RM5.1 billion in revenue. Earnings per share was 10.8 sen for the half-year period under review, while net assets per share stood at RM5.26 as at 30 June 2014.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “Admittedly, it has been a challenging quarter for us as a good number of the Divisions have been affected by cyclical considerations and external pressures. What is crucial is that we will redouble our efforts to strengthen organic growth as we build our prospects with our new acquisitions during the period under review.”
“We would like investors to view us as a solid dividend yielding stock. In line with our dividend policy and to ensure continued shareholder value, we have declared a second interim dividend of 7.5 sen per share for the financial year ending 31 December 2014. This will be paid to all our shareholders on the register as at 15 September 2014.”
The Plantation Division was once again the biggest contributor to the Group, delivering a PBT of RM61.4 million for the half-year period, signifying a formidable 284% increase compared with the previous corresponding period’s RM16 million. The Division’s strong results were attributed to improved average crude palm oil (CPO) prices of RM2,605 per metric tonne (MT), a 12% increase from RM2,328 per MT in the previous corresponding period. Fresh fruit bunches for the six-month period totalled 489,929 MT, a 3% increase compared with the previous year.
Prospects for the Plantation Division, particularly in Sarawak should prove positive given that the Group received a favourable ruling in a court case pertaining to Native Customary Rights (NCR) land in Sg Kelimut, Kanowit District in the State. The court declared that the joint venture company, Boustead Pelita Kanowit Sdn Bhd, set up as the trustee for the 168 native landowners, was native and in compliance with the Land Code. Of importance is the fact that 1,886 hectares of the NCR land was in accordance with the Sarawak Government’s policy to assist the Orang Asal with developing their land.
Meanwhile, the second highest contributor to the Group was the Trading and Industrial Division which delivered a profit of RM58.4 million, lower compared to the previous year’s profit which included a non-recurring gain on a property sale.
The Pharmaceutical Division reported a substantial 55% increase in PBT for the half-year period amounting to RM49.8 million against 2013’s RM32.1 million. Contributing factors included increase in sales revenue in addition to a reduction in operating expenses.
The Finance and Investment Division reported a PBT of RM45.5 million, a reduction compared with the previous year. This was as a result of weaker contributions from the AFFIN Group, mainly due to margin compression arising from greater competition on the loan and deposit front, as well as a reduction in non-interest income.
For the half-year period, the Property Division recorded a lower profit of RM24.5 million compared with last year, mainly due to lower revenue as well as the absence of the sale of investment properties and corporate lots.
The Heavy Industries Division recorded a lower profit of RM3.6 million primarily due to a drop in revenue and higher cost. This Division holds much potential given that the contract with the Government of Malaysia to build six second generation patrol vessels with littoral combat ship capabilities for the Royal Malaysian Navy has been sealed. Essentially, contributions to the Group’s bottom line will improve once progress billings for this project are accelerated.
“We are optimistic that the proposed acquisition of PFC Engineering Sdn Bhd along with the acquisition of 69.88 acres of land in Pulau Indah, Klang will intensify our involvement in the growing oil and gas industry,” concluded YBhg Tan Sri Dato’ Seri Lodin.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiaries, associate companies and joint ventures, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & industrial and pharmaceutical. As at 30 June 2014, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.44 billion. Market capitalisation is currently in excess of RM5.3 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
on behalf of: Boustead Holdings Berhad
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