Boustead Delivers First Half PAT of RM311 million
KUALA LUMPUR, August 24, 2016 – Boustead Holdings Berhad (BHB) recorded an improved performance for its first six months ended 30 June 2016, with a profit after tax (PAT) of RM311 million, marking a substantial 231% increase from RM94 million in the previous year’s corresponding period. Profit before tax (PBT) grew by 135% to RM359 million, while revenue came in at RM3.9 billion. .
For its second quarter ended 30 June 2016, the Group registered a higher PAT of RM301 million compared with RM51 million in the same quarter last year. PBT increased to RM323 million on the back of a turnover of RM2.1 billion.
Earnings per share for the half year period was 12.34 sen, while net assets per share was RM4.78 as at 30 June 2016.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “We are pleased to have delivered improved earnings for the first half of the year. A key contributor to our bottom line was the gains realised on the disposal of our stake in Jendela Hikmat Sdn Bhd as well as the sale of non-core plantation lands. Most of our Divisions also performed well, despite the challenging economic climate. This clearly demonstrates the Group’s resilient focus on unlocking value within our business units, while leveraging on the strength of our diversified nature.”
“In line with this performance, we have declared a second interim dividend of 4 sen per share for the financial year ending 31 December 2016. This will be paid on 30 September 2016 to shareholders on the register as at 14 September 2016. Due to the Group’s enlarged share capital as a result of the rights and bonus issue earlier this year, total dividends to be paid out will amount to RM81 million.”
The Property Division was the biggest contributor with a higher profit of RM201 million for the first half of the year, on the back of a gain on disposal of its associate company Jendela Hikmat Sdn Bhd amounting to RM198 million. However, this was mitigated by a weaker performance by the hotel segment and unrealised foreign exchange loss.
The Plantation Division turned in a stronger profit of RM145 million for the half-year period, mainly due to a gain on disposal of land amounting to RM118 million. Better palm product prices also contributed to the bottom line. The Division’s average crude palm oil selling price for the first half of the year was RM2,424 per metric tonne (MT), up by 10% from the corresponding period. Fresh fruit bunches (FFB) production dropped to 398,418 MT, largely due to the dry weather conditions resulting from the El Nino phenomenon, land disputes in Sarawak and a labour shortage for harvesting tall palms.
The Trading & Industrial Division registered an increased profit of RM51 million for the six-month period. This was achieved on the back of stronger contributions from UAC Berhad and Boustead Petroleum Marketing Sdn Bhd, as well as gains realised on disposal of assets by Johan Ceramics Berhad.
The Pharmaceutical Division posted a lower profit of RM38 million for the first six months, mainly due to higher amortisation for the Pharmacy Information System and increased finance cost.
The Finance & Investment Division recorded an improved profit of RM25 million for the six-month period, with increased contributions from the Affin Group which posted a lower allowance for loan impairment.
The Heavy Industries Division recorded a reduced loss of RM27 million for the second quarter, compared with a loss of RM73 million in the preceding first quarter. The six-month loss was attributable to the downward revision of margins for the Littoral Combat Ship project, additional cost to completion for the restoration of KD Perantau, as well as lack of new ship repair and shipbuilding projects. In addition, due to the suspension of operations of the H225 range of aircraft globally, the Division was impacted by the suspension of operations in Kerteh. The slowdown in the oil and gas industry also continues to affect the Division.
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 2016, Boustead Holdings Berhad’s paid-up capital was RM724 million while its shareholders’ funds stood at RM6.9 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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