23/02/2012 (The Star) - Wilmar International Ltd posted a 57% jump in quarterly profit, boosted by a huge revaluation gain in its core palm oil business and from its enlarged sugar operations, but investors dumped shares on concerns about declining margins.

Singapore-listed Wilmar, the world's largest listed palm oil firm, reported net profit of S$500mil for the three months ended December, up from US$318.6mil a year ago, helped by a S$263mil gain from the revaluation of palm oil plantations.

But the results disappointed analysts as earnings from its consumer products and palm oil businesses both fell by 12% despite higher sales and palm oil production volumes.

Macquarie Securities said Wilmar's net profit excluding one-off items was 44% below its forecast and “a big disappointment”.

Wilmar shares were down 8.2% at S$5.38 during mid-session yesterday, after having fallen as much as 9.4% earlier in the session the largest intraday drop in four months.

Wilmar's fourth quarter 2010 results included a revaluation gain of US$251mil, so its net profit for the three months excluding non-operational and other one-off items actually tripled to US$264.5mil.

“The palm and laurics division did not do well in the fourth quarter, largely due to the European financial crisis. The refining margins for its refineries in places like China and Malaysia also took quite a big hit,” said Nicholas Low, an analyst at Phillip Securities. - Reuters