Boustead registers lower profit of RM501 million

KUALA LUMPUR: Boustead Holdings Bhd reported a pre-tax profit of RM501.65 million for the year ended Dec 31, 2009, down 26.1% from RM678.90 million the previous year.

Revenue declined to RM5.39 billion against RM7.029 billion in 2008, the company said in a filing to Bursa Malaysia on Feb 25.

It said its heavy industries division contributed RM145.2 million in pre-tax profit which was lower than the RM183.8 million recorded in 2008. It attributed the drop to a slower progress in work, and cost escalation.

Contribution from its property division too was lower with its hotel operations profit affected by the start-up cost of its recently opened Royale Chulan Hotel, as well as lower corporate land sales for its property development segment.

Its plantation division also reported lower profits while the finance division showed a turnaround.

The company said the plantation division's earnings this year would depend on palm oil prices while the property division could look forward to stable recurring income from its portfolio of commercial and retail properties and the expansion in its hotel operations.

The heavy industries division holds much growth prospects, it added, saying that its successful track record with offshore petrol vessels and the ageing profile of the nation's marine vessels requiring more maintenance and care would augur well for the division. --Bernama