Boustead posts lower profit of RM7.3m

, Nov 30 — Boustead Holdings Bhd (BHB) posted a lower net profit of RM7.3 million in the third quarter (Q3) ended Sept 30, 2018, as the year-earlier profit of RM310.6 million had included a RM554.9 million gain from the sale of plantation land.

Excluding the gain, profit from operations for the year under review eased to RM108.4 million from RM125.5 million previously.

 In a filing with Bursa today, BHB said revenue rose to RM2.54 billion from RM2.47 billion chalked up in the previous year’s corresponding period.

On its prospects, BHB said its diversified nature in six core areas of the Malaysian economy augured well for the group.

As for the plantation division, crop production and selling prices were two key factors that influenced the profitability, it said in a media statement.

BHB noted that the division’s crop production was much affected by labour shortages and operating issues in the region but was supported by the contribution from the recently acquired estates.

It added that the price outlook for the remaining months of the year was expected to stay challenging due to high palm oil inventories and slow export growth.

Meanwhile, progress billings from the ongoing and upcoming housing projects will contribute positively to the property division’s bottom line and its division is expected to achieve satisfactory performance going forward but will continue to face challenges of occupancies and rates.

As for the heavy industries division, BHB said the littoral combat ship and littoral mission ship projects and defence-related maintenance, repair and overhaul activities would contribute to the division’s performance going forward while the finance and investment division’s earnings would largely be driven by its associate, Affin Bank Bhd. — Bernama

Source: The Malay Mail Online

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