Boustead Holdings Bhd delivered a strong performance for the year ended 31 December 2017, posting a record-high profit before tax (PBT) of RM1.1 billion compared with RM740 million last year.
Profit after tax (PAT) jumped to RM923 million while revenue increased to RM10 billion. This improved performance was driven by gains realised on disposal of plantation lands, amounting to a total of RM555 million.
For its fourth quarter ended 31 December 2017, the Group registered a PAT of RM174 million. PBT came in at RM241 million and revenue stood at RM2.8 billion.
Earnings per share for the full year period was 22.8 sen, while net assets per share stood at RM2.92 as at 31 December 2017.
As part of Boustead’s commitment to enhancing value for shareholders, the Group declared a fourth interim dividend of 2.5 sen per share. This will be paid on 29 March 2018 to shareholders on the register as at 15 March 2018. This will bring total dividends for the year to 11 sen per share.
Tan Sri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “We are pleased to deliver a year of record earnings. This was mainly driven by gains realised on disposal of plantation lands, coupled with positive contributions from all of our Divisions. Once again, the Group’s diversified nature enabled us to remain resilient amidst a challenging environment. Moving ahead, we will continue to leverage on our strengths to maintain our momentum and deliver sustained earnings.”
The Plantation Division was the strongest contributor to the Group with a profit of RM733 million compared with RM276 million in the previous year. This was largely attributable to the gains realised on disposal of plantation lands. The Division also recorded an increased operating profit on the back of better crop production and higher crude palm oil (CPO) prices. The Group recorded an average CPO price of RM2,810 per MT, up by 9% from RM2,584 last year. Average palm kernel price rose to RM2,505 per MT from RM2,460 per MT last year.
The Trading & Industrial Division posted a profit of RM132 million compared with RM147 million last year. The previous year benefitted from a gain on disposal of land amounting to RM34 million. Excluding this gain, the Division recorded an improved profit for the year under review as a result of stronger contributions from Boustead Petroleum Marketing Sdn Bhd and UAC Bhd.
The Heavy Industries Division delivered a profit of RM73 million, marking a turnaround compared with the deficit recorded last year. This was mainly due to better contributions from Boustead Naval Shipyard (BNS), which continued to progress on the Littoral Combat Ship project and other ship repair projects.
BNS also benefited from recognised income from the Littoral Mission Ship project and the reversal of provision for Liquidated Ascertained Damages on ship repair projects. In addition to this, MHS Aviation booked in compensation for the termination of a joint operations contract, which further contributed to the Division’s improved results.
The Finance & Investment Division turned in a higher profit of RM71 million from RM62 million last year.
This was primarily attributable to lower finance costs arising from reduced borrowings due to utilisation of proceeds from the rights issue.
The Pharmaceutical Division recorded an improved profit of RM54 million. This was driven by stronger contributions from its overseas operations as well as lower finance costs.
The Property Division registered a lower profit of RM54 million. The Division was impacted by start-up costs for MyTOWN Shopping Centre and reduced earnings from property development activities in Taman Mutiara Rini, Johor.