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Wednesday, 1 March 2017

(The Star) Boustead declares lower dividend despite higher earnings

PETALING JAYA: Boustead Holdings Bhd (Boustead) has cut its declared dividend for 2016 even though its after-tax profit surged four-fold to RM589mil from RM139mil registered a year earlier.

The group’s pre-tax profit rose by 175% year-on-year to RM740mil, on the back of a turnover of RM8.4bil.

For its 2016 financial year, Boustead declared a dividend of 17.5 sen a share compared with 20 sen a share a year earlier.

Deputy chairman cum group managing director Tan Sri Lodin Wok Kamaruddin said the company’s strong foundation and diversified businesses enabled its resilient growth.

“We have managed to deliver commendable earnings in the face of a very challenging economic climate. This was further supported by gains on disposals, as we maintained our drive to unlock value for our shareholders,” he said.

Boustead’s property division was the strongest contributor to its earnings, as it posted a pre-tax profit of RM324mil in FY16, primarily underpinned by the gains realised on the disposal of Jendela Hikmat as well as the profits from ongoing property development activities.

Boustead’s fourth quarter after-tax profit rose substantially to RM185mil, compared with a loss of RM800,000 a year earlier.

Its before-tax profit also increased to RM261mil, while the top line stood at RM2.42bil.

Moving forward, the conglomerate is optimistic in maintaining a commendable operational and financial performance, amid lingering global economic uncertainties.