KUALA LUMPUR (Aug 20): Boustead Plantations Bhd's net profit for the second quarter ended June 30, 2015 surged over four-fold to RM48.6 million from RM9.46 million a year earlier due to a one-off land disposal gain of RM39.1 million.

The improvement in earnings has resulted in its earnings per share (EPS) jumping to 3.04 sen as compared to 0.9 sen last year.

Boustead Plantations had on May 19 this year entered into sales and purchase agreements with Seng Hong Quarry Sdn Bhd and Bentara Gemilang Industries Sdn Bhd for the disposals of approximately 88.17ha of freehold lands held in Kulai, Johor, for RM49 million cash.

Quarterly revenue fell 18.73% to RM153.38 million from RM188.73 million a year earlier.

The plantation group has declared a second interim dividend of five sen per share in respect of the financial year ending Dec 31, 2015, payable on Sept 29.

Year-to-date, it has declared a seven sen dividend as compared to two sen last year.

For the cumulative six months (1HFY15), the group posted a 41.43% increase in net profit to RM55.95 million against RM39.56 million last year. This translates into an EPS of 3.5 sen versus 3.82 sen in 1HFY14.

Revenue for the period declined 26.35% to RM285.26 million from RM387.3 million in 1HFY14.

In a filing with the stock exchange today, Boustead Plantations said without the land disposal gain, its operating profit in the current quarter under review and year-to-date was lower compared to last year due to the decline in fresh fruit bunch (FFB) production, bearish palm product prices and lower volume of crude palm oil (CPO) sales.

According to the group, its FFB production for the 1HFY15 stood at 480,853 million tonne (MT), down 4% compared with 2014 due to the effects of last year's dry weather conditions and labour shortages in Sabah, as well as continuing blockades in certain Sarawak estates.

However, oil extraction rate (OER) and kernel extraction rate (KER) were fairly consistent at 21.7% and 4.6% respectively, it added.

CPO registered an average selling price (ASP) of RM2,206 per MT for the 1HFY15, which fell below the achievement of RM2,605 per MT for the corresponding period last year by RM399 or 15%.

Going forward, Boustead Plantations said its prospects for the second half of 2015 hinges on the price recovery for palm oil and potential improvements in crop production.

Nonetheless, it said production from the Sarawak region is likely to remain challenging as blockades continue unabated.

It added that Malaysian exports are expected to benefit from the reduction in the global supply palm oil originating from the Indonesian government's new regulation of collecting levies on CPO exports and processed palm products.

"Additionally, the strengthening of soy oil prices and the weakening of ringgit has resulted in a wider CPO discount to soy oil which is likely to boost the demand for palm oil," it added.

As at midday break, Boustead Plantations' shares were down one sen or 0.85% to settle at RM1.16, for a market capitalisation of RM1.87 billion.