KUALA LUMPUR (Nov 21): Boustead Plantations Bhd sank deeper into the red in its third quarter ended Sept 30, 2019 (3QFY19) with a net loss of RM34.31 million, 57% more than the RM21.9 million it reported a year ago, largely due to higher amortisation and finance costs.

The weaker results came despite a 6% increase in revenue to RM139.24 million from RM131.1 million previously from a significant improvement in sales volume of palm oil and kernel, which had offset the decline in prices of these palm products, its stock exchange filing today showed.

Accordingly, its loss per share expanded to 1.53 sen per unit from 0.98 sen per unit.

For the cumulative nine-month period, however, the group returned to the black with a net profit of RM28.72 million compared to a net loss of RM38.88 million a year ago, despite revenue declining 7% to RM398.1 million from RM427.45 million.

The improved cumulative earnings was due primarily to a gain on disposal of plantation land that amounted to RM119.5 million, the group said.

Meanwhile, the group noted that realised crude palm oil average selling price for 9MFY19 came to RM2,011 per tonne, down 16% from RM2,391 per tonne last year while palm kernel's average price droped 39% to RM1,179 per tonne. FFB production for the cumulative period, however, was 10% higher year-on-year at 727,771 tonnes while average oil extraction rate grew 21.6%.

"The group’s prospects for the rest of the year will be much driven by CPO price, crop production and the Group's transformation programme. The transformation programme will focus on yield improvement, prudent cost management and operational efficiency to enhance profitability," Boustead added.

The group's shares settled unchanged at 64 sen today, giving it a market capitalisation of RM1.43 billion. The stock is down 30% from a year ago.