BOUSTEAD PAYS DIVIDEND DESPITE
LUMPUR, May 18, 2009
- In spite of the global economic turmoil, Boustead Holdings Berhad
(Boustead) is declaring a dividend of 5 sen or 10% for its first
quarter ended 31 March 2009. This is a testament of the Group's
commitment to its shareholders even with uncertainties prevailing
in the economy.
For its quarter
under review, the Group registered a profit before tax of RM86 million
which is an improvement over the preceding quarter's profit of RM20
million. However, the said profit was 63% lower than the previous
year's corresponding quarter.
turnover of RM1.2 billion for its first quarter was also lower than
the RM1.8 billion recorded during the same period last year. For
the period under review, earnings per share was 9.34 sen while net
assets per share was RM4.56.
YBhg Tan Sri
Dato' Lodin Wok Kamarrudin, Group Managing Director, Boustead Holdings
Berhad commented, "This has been a trying quarter for the Group
given that on a year on year comparison, we have seen a drop in
profit before tax. Fortunately, our first quarter profits in comparison
with the preceding fourth quarter of 2008 shows a marked improvement."
"What is crucial at this juncture in time is for the Group
to remain profitable of which we are and to ensure that our cashflow
is in positive territory. We do not expect conditions to improve
immediately, however we are optimistic that on a long-term basis,
the Boustead Group will weather this storm. Our inherent potential
lies in our core Divisions, and we are doubling our efforts to maintain
organic growth. This will certainly not be easy given the current
market conditions and sentiments. Nevertheless, we have an obligation
to our shareholders and we intend to fulfill this. Hence, the payment
of dividends for the first quarter of this financial year."
Division recorded a lower profit of RM23.7 million due primarily
to the drastic drop in crude palm oil prices. For the first quarter,
the Division recorded an average palm oil price of RM1,886 per MT
representing a decrease of 38% against last year's corresponding
period's average of RM3,029 per MT.
"At a time
like this, we are still confident that the Plantation Division will
be a major contributor to the Group's bottom line. Moreover, palm
oil prices have made a recovery in early 2009 and recently achieved
a high of RM2,800. Obviously, tightening supply conditions are having
a strain on availability of stock which is also driving prices up.
As such, we look forward for more positive contributions from this
The Heavy Industries
Division contributed to the Group's bottom line with a cumulative
profit of RM30.9 million. A significant milestone for this year
will be the expected delivery of Patrol Vessel 3 to the Royal Malaysian
Navy by end of May 2009. In addition, the division is targeting
to deliver several vessels during the financial year which includes
chemical tankers and anchor handling tug support vessels.
quarter under review, the Trading Division also recorded positive
gains as it registered a modest profit compared with the preceding
quarter as a result of greater stability in crude oil prices, while
the Property Division registered a pre-tax profit of RM17.9 million."
start this year on a sober note, we will not view this economic
downturn as a barrier to sustain earnings but as a good opportunity
to evaluate our strategies and undergo positive changes to make
us more resilient in the long term. Towards this end, we would like
to assure our shareholders that the Group is strong financially
and we will continue to make sound decisions that will enable us
to move forward in the right direction."
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 80 subsidiary and associate companies, 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 and manufacturing
& services. As at 31 December 2008, Boustead Holdings Berhad's
paid-up capital is RM326 million, while its shareholders' funds
stand at RM2.9 billion.
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
on behalf of: Boustead Holdings Berhad By: acorn
communications sdn bhd
For further information, please call: Reshvinder Kaur
at 017 2757 985 or
Natalia Ghani at 03 7958 8348
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