KUALA LUMPUR, Aug 24 — Boustead Plantations Bhd posted a net loss of RM5.52 million in the second quarter ended June 30, 2023 (2Q FY2023) versus a net profit of RM73.22 million a year ago due to a significant reduction in palm product prices.

In a filing with Bursa Malaysia today, the plantation group said its revenue fell to RM201.23 million from RM348.96 million in the previous corresponding quarter.

"The average crude palm oil price (CPO) for the 2Q FY2023 stood at RM3,926 per tonne, reflecting a decrease of RM2,685 per tonne (41 per cent) from the average price of RM6,611 per tonne recorded in the same quarter last year.

"Similarly, the average palm kernel (PK) price experienced a decline by 43 per cent, settling at RM2,108 per tonne,” it said.

For the first half of 2023 (1H FY2023), the company posted a net loss of RM304,000, while revenue for the period dropped to RM400.98 million.

On prospects, the group said it expects FY2023’s performance to remain challenging, given the trends in CPO prices and the performance of crop production.

"Output is expected to rise through 3Q on the back of seasonal trends and easing labour shortages.

"Palm prices will likely remain stable in the short term on positive sentiments following the crude oil price increase and uncertainties surrounding soft oil production,” it said. — Bernama