Boustead Q4 PAT Jumps to RM185 Million
Full Year PAT of RM589 Million Surges Fourfold
KUALA LUMPUR, February 28, 2017 – Boustead Holdings Berhad (Boustead) turned in a strong performance for the financial year 31 December 2016 with a profit after tax (PAT) of RM589 million, reflecting a fourfold jump compared with RM139 million in the previous financial year. Profit before tax (PBT) increased to RM740 million from RM269 million last year. This was achieved on the back of a turnover of RM8.4 billion.
In the Group’s fourth quarter ended 31 December 2016, PAT jumped substantially to RM185 million, up compared with the deficit of less than RM1 million in the previous year’s corresponding quarter. PBT for the quarter under review increased to RM261 million, while revenue stood at RM2.42 billion.
Earnings per share for the full year period was 20.0 sen, while net assets per share stood at RM3.40 as at 31 December 2016. .
In line with Boustead’s commitment to delivering shareholder value, the Group declared a fourth interim dividend of 3.5 sen per share. This will bring total dividends for the year to 17.5 sen per share. The remaining 3.5 sen will be paid on 28 March 2017 to shareholders on the register as at 16 March 2017.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “Our strong foundation and diversified nature enabled us to remain resilient and deliver commendable earnings in the face of a very challenging economic climate. This was further supported by gains on disposals, as we maintained our drive to unlock value for our shareholders.”
The Property Division was the strongest contributor to the Group’s results, with a PBT of RM324 million compared with RM139 million for the corresponding period. This was primarily driven by gains realised on the disposal of Jendela Hikmat, amounting to RM210 million. Profits from ongoing property development activities also contributed to the Division’s solid performance.
The Plantation Division closed the year with a higher PBT of RM276 million compared with RM95 million last year. This was mainly attributable to the disposal of lands and disposal of Boustead Sedili Sdn Bhd. Higher prices of palm products also contributed to the Division’s strong performance. The Group recorded an average CPO price of RM2,584 per MT for 2016, a 20% increase from RM2,148 per MT recorded in the previous year. Average palm kernel price increased to RM2,460 per MT, signifying a 60% surge.
The Trading and Industrial Division registered a higher PBT of RM147 million compared with RM38 million last year. This was achieved on the back of stronger contributions from UAC Berhad and Boustead Petroleum Marketing Sdn Bhd (BHPetrol), along with gains realised on disposal of assets by BHPetrol.
The Finance & Investment Division delivered an improved PBT of RM61 million compared with RM44 million in the previous year. This was primarily driven by better contribution from the Affin Group, which recorded a lower allowance for loan impairment.
The Pharmaceutical Division posted a PBT of RM52 million, a decline compared with RM90 million in the previous year, mainly due to reduced Government orders coupled with higher operating and finance costs. The decline in orders was partially caused by lower buffer stocks required in Government hospitals due to increased delivery efficiency as a result of the Division’s Pharmacy Information System.
Meanwhile, the Heavy Industries Division recorded a lower deficit of RM120 million following an improved performance from Boustead Heavy Industries Corporation that helped cushion the deficit incurred by Boustead Naval Shipyard and MHS Aviation.
“Although the tough economic landscape is set to persist in the year ahead, we are optimistic that we will be able to deliver sustained earnings. We are focused on reinforcing our strong fundamentals and capitalising on key growth drivers within the Group’s six core businesses, while tapping into viable opportunities for growth moving forward,” 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 31 December 2016, Boustead Holdings Berhad’s paid-up capital was RM1.01 billion while its shareholders’ funds stood at RM6.9 billion. Market capitalisation is currently in excess of RM5.6 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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