KUALA LUMPUR (May 23): Boustead Plantations Bhd (BPB) registered a net loss of RM16.2 million for its first quarter ended March 31, 2019 (1QFY19), down from a net profit of RM5.26 million a year ago, due to lower palm product prices and higher interest expenses.

This was the group's fourth consecutive quarterly net loss, bringing its loss per share to 0.72 sen compared to an earnings per share of 0.23 sen in the previous year's corresponding quarter, BPB announced in a filing today.

Quarterly revenue shrank 12.74% to RM134.91 million from RM154.6 million a year ago, it said.

"Average crude palm oil (CPO) selling price for the first quarter was RM2,017 per metric tonne (MT), down by 19% compared with the same quarter last year. Average palm kernel price declined by 41% to RM1,300 per MT.

"Meanwhile, fresh fruit bunches (FFB) production for the quarter grew to 258,996 MT, 14% higher than the previous year's corresponding quarter (and) average oil extraction rate increased to 21.4%, while average kernel extraction rate was stable at 4.5%," BPB said.

Despite the weaker quarterly performance, the group declared a first interim dividend of 1 sen per share for its financial year ending Dec 31, 2019, to be paid on June 28 — in contrast to the 2.5 sen it declared in the same quarter last year.

Geographically, the peninsular region delivered a profit of RM9.9 million to the group in 1QFY19, marginally lower than RM10.7 million in the previous year's corresponding quarter, though FFB crop improved 14% to 105,646 tonnes.

Sabah posted a deficit of RM4 million, primarily due to reduced palm product prices and increased depreciation charges. FFB production grew by 22% to 127,495 tonnes. Sarawak was also in deficit, by RM6 million, mainly attributable to lower palm product prices and FFB production, which declined by 10% to 25,855 tonnes.

"Moving forward, the group remains optimistic on long-term prospects as demand for palm oil is projected to grow on the back of insufficient supplies of other edible oils, increased imports by China and higher biodiesel blending mandates in Indonesia.

"Although price recovery will continue to be capped by high palm oil inventories, CPO prices are expected to be supported in the near term by the upcoming festive season coupled with increased exports to India due to reduction in import duties," BPB said.

The group also expects to achieve moderate growth in crop production in Sarawak. Separately, the recent disposal of 139 hectares of plantation land in Penang will also add a RM119 million gain to its earnings.

Shares in BPB closed down 1.5 sen or 1.95% at 75.5 sen, giving the group a RM1.69 billion market capitalisation.