KUALA LUMPUR (Aug 22): A one-off disposal gain helped Boustead Plantations Bhd return to the black for the second quarter ended June 30, 2019 after six straight quarters of losses.

The group posted a net profit of RM79.23 million for the quarter, versus a net loss of RM22.24 million a year earlier. It reported earnings per share of 3.54 sen, against a loss per share of 0.99 sen previously.

The one-off gain of RM119.5 million came from the disposal of a piece of plantation land in Seberang Perai Utara, the group said in a filing with Bursa Malaysia.

Revenue for the quarter fell 12.56% to RM123.95 million from RM141.75 million in the same quarter last year, due to a significant decline in prices of palm products but was cushioned by better crop production, the group said.

For the cumulative first half of the year, Boustead Plantation  turned around by posting a net profit of RM63.03 million compared to a net loss of RM16.98 million in the same period last year. Revenue fell 12.65% to RM258.86 million from RM296.35 million.

During the six-month period, crude palm oil realised an average selling price of RM2,003 per tonne, down RM454 or 18% compared with the same period last year.

Palm kernel’s average price, meanwhile, fell RM799 or 40% to RM1,202 per tonne.

“Fresh fruits bunch (FFB) production for the six-month period of 488,198 tonnes was 13% higher than first half 2018's production of 431,349 tonnes. The oil extraction rate increased from 20.7% to 21.4% while kernel extraction rate remained stable at 4.4%,” it added

Moving forward, Boustead Plantations expects the palm oil price to hover at the current range before recovering towards year-end amid uncertainties relating to the US and China trade war.  

Boustead Plantations shares fell one sen or 1.47% to 67 sen today, bringing the group a market capitalisation of RM1.51 billion.