KUALA LUMPUR: Boustead Holdings Bhd expects its highest profit this year as earnings are backed by strong crude palm oil (CPO) prices.
“We are looking at a record profit for this year,” said deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin after the company EGM yesterday.
He said palm oil contributes about 40% of the company’s bottom line earnings.
Lodin added that CPO prices had remained strong in the past few years though they recently moderated to a level below RM3,000 per tonne.
For the nine months ended Sept 30, Boustead’s plantation segment contributed 12.6% or RM754.1 million of the company’s total revenue.
This was an improvement of 26% year-on-year for the segment as the average CPO price rose 33% to RM3,350 from RM2,514 per tonne a year ago.
For the 9MFY11, net profit rose 27.3% to RM418.3 million from RM328.6 million a year ago, while revenue increased 33.6% to RM6 billion from RM4.49 billion.
Boustead achieved its best performance in FY08 with net profit and revenue at RM579 million and RM7.03 billion respectively.
The company will spend a third of its RM1.4 billion capital expenditure next year on its plantation segment. It will also spend about RM32 million to expand its pharmaceutical segment, which is expected to contribute up to 15% in the next two to three years following the 10% expected in 2012.
Although a relatively recent addition to Boustead, the pharmaceutical division, now in its inaugural nine months, is a major contributor to the group’s top line growth.
The company is present in six key areas, which are plantation, heavy industries, property, finance and investment, trading and manufacturing, and pharmaceutical.
For its third quarter ended Sept 30, Boustead’s net profit increased 31.6% to RM120.9 million from RM91.9 million in the previous corresponding quarter mainly due to higher sales volume and firmer palm product prices. Revenue rose 44.6% to RM2.19 billion from RM1.51 billion a year ago.
On a separate note, Boustead once again refuted a news report that it was proposing to take its 65%-unit Boustead Heavy Industries Corp Bhd (BHIC) private.
“As we have announced before, we have no intention presently to take BHIC private,” said Lodin.
It was previously reported by a local media that Boustead was considering taking BHIC private, as earnings from a RM9 billion project from the ministry of defence were expected to come earlier.
To recap, BHIC’s associate Boustead Naval Shipyard was awarded a contract with a ceiling amount of RM9 billion to design and construct six combat ships for the defence ministry.
“We would like to clarify that Boustead is currently not considering any proposal to privatise BHIC,” the company had earlier said to Bursa Malaysia.
Boustead is the largest shareholder of BHIC, followed by Lembaga Tabung Angkatan Tentera (LTAT) with a 8.15% stake.
This article appeared in The Edge Financial Daily, December 23, 2011.
“We are looking at a record profit for this year,” said deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin after the company EGM yesterday.
He said palm oil contributes about 40% of the company’s bottom line earnings.
Lodin added that CPO prices had remained strong in the past few years though they recently moderated to a level below RM3,000 per tonne.
For the nine months ended Sept 30, Boustead’s plantation segment contributed 12.6% or RM754.1 million of the company’s total revenue.
This was an improvement of 26% year-on-year for the segment as the average CPO price rose 33% to RM3,350 from RM2,514 per tonne a year ago.
For the 9MFY11, net profit rose 27.3% to RM418.3 million from RM328.6 million a year ago, while revenue increased 33.6% to RM6 billion from RM4.49 billion.
Boustead achieved its best performance in FY08 with net profit and revenue at RM579 million and RM7.03 billion respectively.
Lodin says presently Boustead has no intention to take BHIC private.
The company will spend a third of its RM1.4 billion capital expenditure next year on its plantation segment. It will also spend about RM32 million to expand its pharmaceutical segment, which is expected to contribute up to 15% in the next two to three years following the 10% expected in 2012.
Although a relatively recent addition to Boustead, the pharmaceutical division, now in its inaugural nine months, is a major contributor to the group’s top line growth.
The company is present in six key areas, which are plantation, heavy industries, property, finance and investment, trading and manufacturing, and pharmaceutical.
For its third quarter ended Sept 30, Boustead’s net profit increased 31.6% to RM120.9 million from RM91.9 million in the previous corresponding quarter mainly due to higher sales volume and firmer palm product prices. Revenue rose 44.6% to RM2.19 billion from RM1.51 billion a year ago.
On a separate note, Boustead once again refuted a news report that it was proposing to take its 65%-unit Boustead Heavy Industries Corp Bhd (BHIC) private.
“As we have announced before, we have no intention presently to take BHIC private,” said Lodin.
It was previously reported by a local media that Boustead was considering taking BHIC private, as earnings from a RM9 billion project from the ministry of defence were expected to come earlier.
To recap, BHIC’s associate Boustead Naval Shipyard was awarded a contract with a ceiling amount of RM9 billion to design and construct six combat ships for the defence ministry.
“We would like to clarify that Boustead is currently not considering any proposal to privatise BHIC,” the company had earlier said to Bursa Malaysia.
Boustead is the largest shareholder of BHIC, followed by Lembaga Tabung Angkatan Tentera (LTAT) with a 8.15% stake.
This article appeared in The Edge Financial Daily, December 23, 2011.
