KUALA LUMPUR (Feb 27): Boustead Plantations Bhd reported a net profit of RM36.44 million for the fourth quarter ended Dec 31, 2017 (4QFY17), down 27.5% from RM50.29 million a year earlier when there was a RM33.4 million gain on disposal.

Quarterly revenue rose 10.9% to RM218.16 million from RM196.65 million in 4QFY16 on improved crude palm oil (CPO) prices and fresh fruit bunches output, the group said in a filing with Bursa Malaysia today.

Boustead Plantations said profit was up in the Peninsular Malaysia and Sabah regions, by 41% to RM108.1 million and 19% to RM84.9 million respectively. But it was down by RM1 million to RM6.5 million in Sarawak.

For the full financial year (FY17), the group's net profit almost tripled to RM665.24 million, largely due to the gain on disposal of lands in Seberang Perai amounting to RM555 million.

Revenue rose 7.38% to RM760.10 million in FY17 from RM707.88 million in FY16.

Boustead Plantations also declared a fourth interim dividend of 4 sen per share for FY17, payable on March 27. This brings its full year payout to 19.5 sen per share compared with 14.5 sen per share in FY16.

In a statement today, the group said better crop production and higher CPO prices contributed to the positive results.

"Moving ahead, CPO prices are predicted to soften as a result of rising palm oil production, which is projected to outpace palm oil consumption," said its vice-chairman Tan Sri Lodin Wok Kamaruddin.

He added that increased soybean acreage in the US and heightened competition from Indonesia are also expected to put pressure on the CPO market.

"Despite these challenges, prospects remain bright for the group. In particular, our proposed acquisition of 11,600 hectares of plantation land in Sabah is expected to be completed by the second quarter of 2018, Lodin said.

Boustead Plantations shares closed unchanged at RM1.69 today, giving it a market capitalisation of RM2.7 billion.