Big impairment and lower CPO prices drag Boustead Plantation's FY19 results
25.02.2020 (New Straits Times Online) - KUALA LUMPUR: Boustead Plantations Bhd’s net loss widened more than twofold to RM144.01 million in the year ended December 31, 2019 (FY19), from a net loss of RM51.78 million recorded a year ago.
Boustead Plantations said this was due to a RM176.0 million impairment and lower palm product prices.
Its FY19’s revenue eased 1.2 per cent to RM577.20 million from RM584.01 million, dragged by lower average crude palm oil (CPO) and palm kernel selling prices.
For the fourth quarter, Boustead Plantation’s net loss extended to RM172.73 million from RM12.90 million, while revenue rose 14.4 per cent to RM179.10 million from RM156.56 million.
The group said its prospects for the coming year would be much driven by crude palm oil (CPO) price and its transformation programme.
“CPO price is expected to improve in the first-half of 2020 arising from expected lower crop production and higher global demand.”
It said CPO prices were expected to moderate but remain more favourable than last year.
“The group is optimistic that the transformation programme which focuses on yield improvement, prudent cost management and operational efficiency, together with the higher palm oil prices will result in improvement in the group’s performance,” it added.