KUALA LUMPUR (May 17): Boustead Plantations Bhd saw its net profit surge more than five times to RM42.59 million or 2.66 sen a share in the first quarter ended March 31, 2016 (1QFY16) from RM7.35 million or 0.46 sen a share a year ago, primarily due to gains realised on disposal of lands amounting to RM34.6 million.

Revenue rose 3.9% to RM136.98 million in 1QFY16, from RM131.89 million in 1QFY15.

The group declared a first interim dividend of 3 sen per share for the financial year ending Dec 31, 2016 (FY16), payable on June 28.

In statement today, Boustead Plantations said the average crude palm oil (CPO) selling price for 1QFY16 was RM2,267 per tonne, up 1.4% from RM2,236 per tonne a year ago; while average palm kernel price increased 15% to RM1,907 per tonne.

However, fresh fruit bunch (FFB) production dropped to 185,205 tonnes, largely due to hot and dry weather conditions resulting from the El Nino phenomenon. Average oil extraction rate was 21.5%, a slight reduction from 1QFY15; while kernel extraction rate was marginally lower at 4.5%.

Moving forward, Boustead Plantations vice-chairman Tan Sri Lodin Wok Kamaruddin said crop production for the group is expected to be impacted by tough conditions.

"This includes the extreme weather experienced during the first quarter, as well as ongoing challenges with respect to native claims in Sarawak.

"CPO prices could also be moderated by low mineral crude oil prices, which could curtail the use of CPO for biodiesel. Other mitigating factors include the windfall levy on CPO prices above the threshold price, and CPO export taxes," he added.

Boustead Plantations shares closed one sen or 0.69% higher at RM1.46 today, for a market capitalisation of RM2.34 billion.