PETALING JAYA: Boustead Plantations Bhd’s first quarter of financial year 2022 performance was boosted by stronger palm product prices and an extraordinary disposal gain.

       The quarter ended March 31 saw its net profit jumping to RM435.16mil year-on-year (y-o-y) from RM12.23mil, while revenue nearly doubled to RM324.16mil.

       “For the first quarter, the average crude palm oil (CPO) price surged 61% to RM6,030 per tonne, compared with RM3,751 per tonne in the previous year’s corresponding quarter.

       “The average palm kernel price was also substantially higher at RM4,655 per tonne, up by RM2,135 or 85%,” the company said in a statement.

       These led to a higher earnings per share of 19.43 sen from the 0.55 sen recorded in the same quarter last year, the company said.

       Boustead Plantations’ board has declared a first interim single-tier dividend of 7.3 sen per share, which will be paid on June 24 to shareholders who are recorded on the register as at June 9.

       The quarter was boosted by an extraordinary gain on the disposal of the Kulai Young land amounting to RM364mil. Excluding the gain, its pre-tax profit was RM145mil, the company said.

       Boustead Plantations’ fresh fruit bunch or FFB production for the quarter was at 195,882 tonnes, which was 9% higher from last year’s corresponding quarter of 180,165 tonnes.

       The oil extraction and kernel extraction rates grew to 20.6% and 4.1% from 20.3% and 4% respectively, it said.

       Chief executive officer Zainal Abidin Shariff said the firm was encouraged by the bullish trend and encouraging crop production in the quarter and would remain focused on its initiative of mechanisation and digitalisation, moving forward.

       “Through mechanisation, we have reduced the number of workers required for our operations. Compared to the same quarter last year, we had closed the gap by 30%.

       “We expect to further improve productivity and realise more benefits in the coming quarters from efforts on mechanisation to take advantage of the strong CPO price,” he said.

       The company said higher collection from customers on strong CPO prices and proceeds from the disposal of the Kulai Young land had improved overall cash flows.