Boustead’s Q3 net profit soars

PETALING JAYA: Boustead Holdings Bhd’s net profit in the third quarter ended Sept 30, 2016 jumped over sevenfold to RM44 million from RM6 million in the same period last year, thanks to lower operating and finance costs.

Revenue, however, slipped to RM2.02 billion from RM2.12 billion in the previous corresponding quarter.

Boustead has proposed to declare a third interim dividend of 5 sen per share.

“Despite persisting global economic headwinds, we are pleased to note that most of our divisions recorded improved results,” its deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said in a statement yesterday.

“This is testament to the fact that our strategy to streamline our core businesses continues to bear fruit. The pick-up in crude palm oil prices also contributed to our stronger earnings,” he added.

However, he said the group property division was impacted by a weaker performance from the hotel segment as well as unrealised foreign exchange loss.

“We will continue to undertake measures to strengthen our business divisions and enhance core competencies on an operational level, in order to deliver shareholder value.”

While the remainder of the year is expected to be challenging, both globally and domestically, Boustead believes the prospects will continue to be positive as the country’s fundamentals remain strong.

“The diversified nature of the group’s business in six segments of the Malaysian economy would augur well for the group,” it said.

For the nine-month period, the group posted a net profit of RM248.3 million, 27 times higher than the RM9 million a year ago, on the back of gains realised on the disposal of its stake in Jendela Hikmat Sdn Bhd amounting to RM198 million, as well as the sale of non-core plantation land.

Revenue fell 4.3% to RM5.95 billion, from RM6.22 billion before.