Revenue surged to RM324.16 million compared to RM171.94 million in the previous year due to an increase in palm product prices and fresh fruit bunches production, which led to a profit from operations of RM151.3 million.
Meanwhile, gain on disposal of Kulai Young land amounted to RM364.1 million, it said in a filing with Bursa Malaysia today.
It said the average CPO price for the first quarter was RM6,030 per tonne, 61% higher than last year’s corresponding quarter of RM3,751 per tonne.
The highest monthly average CPO price of RM6,780 per tonne was recorded in March 2022, which surpassed last year’s highest monthly average CPO price of RM5,159 per tonne recorded in November 2021.
Palm kernel’s average price stood at RM4,655 per tonne, or an 85% surge.
Boustead Plantations said FFB production for the quarter of 195,882 tonnes increased by 9% more than the production in the first quarter of 2021 of 180,165 tonnes, contributing a yield of 2.9 tonnes per hectare as compared with 2.7 tonnes per hectare in the same quarter last year.
“Oil extraction rate and palm kernel extraction rate increased from 20.3% to 20.6% and from 4% to 4.1% respectively,” it noted.
By region, Peninsular Malaysia achieved a segment profit of RM75.7 million, an increase of RM49.9 million from a profit of RM25.8 million for the corresponding quarter last year.
The Sabah region posted a segment profit of RM71.3 million, surpassing last year’s RM5.8 million, and Sarawak’s segment profit of RM4.3 million improved versus last year of RM1.8 million.
Boustead Plantations said prices of palm oil would remain strong for the remaining second quarter of 2022 in view of the ongoing Ukraine-Russia conflict and the tightness of CPO production that would dampen the increasing demand for edible oil.
However, the sentiment on Indonesia lifting the ban on the export of palm oil products will add bearishness to the palm oil prices.
“Palm oil supply is expected to improve over the second half of the year due to easing of labour shortages with the entry of foreign workers to Malaysia.
“The market is expected to stabilise earliest in July 2022 and palm oil demand is set to increase.”