Boustead’s net profit soars to RM290m

by AZREEN HANI / graphic by TMRgraphic

BOUSTEAD Holdings Bhd recorded RM290.3 million net profit in the first quarter of 2022 (1Q22), more than 500% increase from RM43.1million recorded in the same period last year.

The attained Ebitda stood at RM794.4 million against RM274.2 million recorded during 1Q21, while the revenue for the quarter was also higher at RM3.4 billion from RM2.1 billion achieved in the same corresponding period.

The overall performance was mainly attributed to a one-off gain from the disposal of plantation land of RM364.1 million and continued robust performance by almost all the divisions. 

The bottom line was further bolstered by a higher share of results from an associate.

During the quarter, the plantation division registered a significantly higher profit before tax (PBT) of RM509.5 million in contrast to a PBT of RM19.3 million in 1Q21, attributable to a one-off gain on disposal of plantation land.

The trading, finance and investment division recorded a PBT that more than doubled to RM122.1 million from RM47.3 million recorded last year, with profits mainly driven by a higher stockholding gain compared to the same period last year by Boustead Petroleum Marketing on the back of higher average fuel prices.

Boustead Group MD Datuk Seri Mohammed Shazalli Ramly said the group’s encouraging results bore testimony to the continuous efforts by the whole organisation to improve operational performance that accelerated business growth and profitability.

“Meanwhile, the group has set in motion several ventures, including collaboration with Kuwait-based international investment company Al Hajri Global Group, as they seek to explore investment opportunities with Boustead which include businesses related to oil and gas, medical, construction, housing development and finance sectors, all of which fits perfectly with our Boustead Hijau agenda,” he said in a statement on Friday.

Meanwhile, Boustead chairman Datuk Seri Mohd Redzuan Md Yusof said he is pleased with the outcome of this quarter’s financial results and while remaining optimistic that the group is as vigilant as ever in protecting business growth with best practices.

“The group’s performance for this quarter is a good incentive for us to accelerate prospects into new ventures related to economic, social and governance-based initiatives, blockchain technology and renewable energy in partnership with established international partners to become a progressive energy and solutions provider while enriching lives, providing employment as well as achieve better performance and beyond for our shareholders,” he said.