Boustead Holdings’ earnings jump seven-fold in Q3

PETALING JAYA: Boustead Holdings Bhd’s net profit for the third quarter ended Sept 30, 2017 jumped seven-fold to RM312.40 million from RM44.00 million a year ago due to a gain on disposal of plantation land amounting to RM554.9 million.

Revenue for the quarter rose 22.17% to RM2.47 billion from RM2.02 billion a year ago due to better revenue across all divisions except for property and finance and investment divisions.

In a filing with Bursa Malaysia today, the group said its plantation division’s revenue was higher on the back of better palm product prices and higher fresh fruit bunches (FFB) production while the trading and industrial division’s revenue rose due to higher fuel prices.

Revenue for heavy industries division improved on higher billing for LCS and ship repair projects as well as recognition of revenue from Littoral Mission Ship project while revenue for pharmaceutical division was higher due to higher orders from government hospitals and growth in the Indonesian segment.

However, the property division recorded lower revenue due to lower contribution from property development activities in Taman Mutiara Rini, Johor.

For the nine months ended Sept 30, 2017, net profit rose 51.39% to RM375.90 million from RM248.30 million a year ago while revenue rose 21.59% to RM7.23 billion from RM5.95 billion a year ago.

The group declared a third interim dividend of 3 sen per share for the current quarter in respect of the financial year ending Dec 31, 2017, payable on Dec 29, 2017.

The group expects the remainder of the year to remain challenging on both global and domestic fronts, with downside risks such as sluggish productivity in major economies, rising protectionism, geopolitical tensions, effect of climate changes and volatility in the financial markets possibly hampering growth in the global economy.

On the domestic front, volatility of commodity price and concern on rising cost of living may impede growth however, long-term prospects for the economy remain positive, supported by strong economic fundamentals and a sound financial system.

The group expects its diversified nature in six core areas of the Malaysian economy to augur well for the group.

Boustead ended the morning session 2 sen or 0.67% lower at RM2.98 with a total of 273,900 shares traded.