KUALA LUMPUR (March 31) : Boustead Holdings Bhd’s net loss narrowed by 69% to RM352.30 million in the fourth quarter ended Dec 31, 2020 (4QFY20), from RM1.13 billion in the previous year’s corresponding quarter, as the group reported lower impairment of property, plant and equipment of RM159.3 million.

In contrast, in 4QFY19, the group booked RM1.14 billion worth of impairment of property, plant and equipment, right-of-use of assets and goodwill, and accelerated amortisation of rights to supply.

As a result, loss per share reduced to 17.38 sen from 55.54 sen, despite revenue falling 13% to RM2.21 billion from RM2.54 billion. The group did not recommend any dividend.

Compared to the immediate preceding quarter of 3QFY20, however, Boustead’s net loss expanded over six times from RM51.80 million, despite revenue rising 17% from RM1.89 billion.

For the full FY20, the group pared its net loss to RM550.90 million from RM1.28 billion in FY19, amid lower operating costs, though revenue slid to RM7.86 billion from RM10.32 billion, primarily due to lower average price and sales volume for fuel and variation in milestones achieved in the heavy industries business.

“In FY19, the group’s results were affected by impairment losses and accelerated amortisation as mentioned above, whereas in FY20, the group’s results were helped by the gain on disposal of an associate Kao (Malaysia) Sdn Bhd of RM44.5 million and lower impairment losses,” the group noted.

Commenting on the group’s financial result, Boustead managing director Datuk Seri Mohammed Shazalli Ramly said while the economic condition may be challenging, the group has been seeing a lot of positive news from its pharmaceutical and plantations businesses.

“We are working hard to resolve the key issues plaguing our heavy industries business within this year and with the government’s Covid-19 vaccination programme currently underway, we hope that the tourism and property industries will slowly be reinvigorated.

“Boustead has been making steady and promising improvements, and the management of Boustead will continue to give unwavering focus in the Reinventing Boustead strategy by revamping our ways in executing businesses, capitalising on emerging opportunities and accelerating value creation,” he said in a statement.

Moving forward, Shazalli said the group will be venturing into the digital services and technology sector, as well as rationalise a few non-strategic assets. It will also be changing business models for new revenue sources.

“We are clear on the path we need to take to improve our business prospects and maximise the returns to our main stakeholders – the military contributors of Armed Forces Fund Board,” he said.

Shares of Boustead traded one sen or 1.64% lower today to 60 sen, valuing the conglomerate at RM1.21 billion.

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