KUALA LUMPUR: Boustead Holdings Bhd?s net profit surged 212% to RM146.5 million for the second quarter ended June 30, 2010 from RM46.90 million a year ago, mainly due to stronger palm product price and higher sales volume.

It said on Monday, Aug 23 that revenue for the quarter increased to RM1.42 billion from RM1.28 billion in 2009, while earnings per share was 15.68 sen.

Boustead declared a second interim single tier dividend of ten sen per share.

On its prospects for the current year, Boustead said that while both the domestic and regional economies are showing encouraging signs of recovery, the global economy continues to remain challenging.

It said the plantation's earnings will very much be dependent on palm oil prices, adding that the strong buying from Asian giants China and India for the festive season starting in August, and the aggressive domestic biofuel mandates in the Americas which are swallowing up bumper soy crops in Argentina and Brazil faster than usual would augur well for CPO.

?We are therefore cautiously optimistic that CPO prices may still hold at attractive levels for the rest of the year,? it said in a filing to Bursa Malaysia Securities on Aug 23.

?The Heavy Industries Division is expected to benefit from recovery in the oil and gas sector, and it is anticipated that the strategic alliances formed with our foreign partners will start generating earnings in the coming months. The Property Division can look forward to stable recurring income from its portfolio of commercial and retail properties and the expansion of the hotel operations. The other divisions are expected to perform satisfactorily for the remainder of the year,? it said.