The Benso Oil Palm Plantation Plc (BOPP) has disclosed that the company in the coming days will pay over GH¢30 million as dividends to some shareholders for the 2021 financial year.
The total amount of dividends the company would pay is GH¢36.97 million on Basic and Diluted End Price Share of GH¢2.6558 out of a total profit of GH¢92.41 million representing a 233 percent increase compared to the previous year. Meanwhile, the company paid a total dividend of GH¢7.41 million out of a total profit of GH¢24.69 million for the year ending 31 December 2020.
Dr. Ishmael Yamson, Chairman of the Board of Directors, during an Annual General Meeting with stakeholders stated that the stellar performance in 2021 despite the coronavirus pandemic is because of dedication and prudent measures adopted by the company.
The Chairman added that the level of profitability was impacted by the 63 percent growth in the trading prices of crude palm oil, 70 percent growth in crude palm kernel oil prices, and nine percent growth in crop production from the Nucleus, Smallholder, and Out-grower.
The Board Chair indicated that there is also an improvement in operating efficiencies to contain the growing cost of business amid the COVID-19 pandemic.
Production Volume Increases
Dr. Ishmael Yamson disclosed that the production volume for palm fruits processed during the year under review was 146,326 metric tonnes, representing a nine percent increase over the 2020 production volume. He, therefore, lauded the loyalty of Nucleus and Out-growers which helped to increase the volumes despite a slight reduction in the crop from the smallholder plantings, as 500hectors of the total area of 1,650ha is undergoing replanting.
The Chairman noted that the company purchased 61,753 metric tonnes of fresh fruit bunches at a total cost of GH¢37million from smallholders and out-grower farmers in the catchment areas. He stated that the Central Regions recorded growth in turnover of 73 percent for the financial year 2021 due to growth in production and significant growth in world prices for crude Palm oil.
“The improved operating efficiencies and the general rise of 63 percent and 70 percent of trading Crude Palm Oil and Crude Palm Kernel Oil prices respectively also improved operating profit.”Dr. Ishmael Yamson
Dr. Yamson, moreover, asserted that turnover expanded by 73 percent from GH¢123.82 million in the prior period to GH¢214.18 million. However, he added that the combined effects of economies of scale in production and the cumulative Ghana Cedi depreciation of four percent have a constructive impact on revenue and the cost of sales.
Engineer Samuel Avaala, the General Manager of BOPP averred that the company has plans for expansion since the regulatory environment was set up with the help of the Tree Crops Development Authority.
“We are more than poised to take advantage of the policy environment that has been created to embark on an expansion… it is our strategy to operations within the next five years”.Engineer Samuel Avaala
The Managing Director noted that with a clear signal from the Authorities, another critical milestone would be the win-win engagement with landowners, the assemblies, and traditional authorities to accelerate the expansion drive.
BOPP is concerned with growing oil palm and processing palm fruits into crude palm oil, the key ingredient used in the downstream refinery and manufacturing of cooking oil and other products for domestic consumption.
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