The revenue of Benso Oil Palm Plantation (BOPP) has risen by 14.1% year on year to GHc89.67 million for the first nine months of 2020 driven by 37 % year on year rise in the price of Crude Palm Oil to US$798.12 per MT by September 2020.

The price Palm Kernel Oil also increased by 25.1 percent y/y to US$767.14 per MT in September, according to data from the World Bank.

he company’s margins were also buoyed by a slowdown in the growth of operating expenses, which rose by 7.5%y/y (versus 34.2%y/y in 2019) to GHc10.44 million in 2020. This helped to reduce the operating expense ratio by 80 basis points to 11.6% in 2020 from 12.4% in 2019.

BOPP’s profit before tax surged by 85.4%y/y to GHc16.49 million in 2020 from GHc8.89 million in 2019. Net earnings also jumped by 79.8%y/y to GHc13.67 million from GHc7.61 million over the same period. Consequently, the company’s net profit margin went up from 9.7% to 15.2%.

There is a positive short-term outlook for palm oil prices on back of anticipated disruptions to output by the La Nina weather pattern, which cause flooding in the key producing countries of Malaysia and Indonesia. In addition, palm oil is becoming attractive to sensitive buyers who are concerned by the rising price of sunflower oil.