MARKET DEVELOPMENT
Golden Agri’s Q1 Profit Down 30% As Palm Oil Prices Plunge
Golden Agri’s Q1 Profit Down 30% As Palm Oil Prices Plunge
14/05/2013 (The Star) - Golden Agri-Resources on Monday reported first-quarter net profit plunged 30.4 per cent as a result of lower crude palm oil (CPO) prices.
Net profit for the three months ended March 31 was US$112.8 million (S$140 million) as turnover fell 5.9 per cent to US$1.43 billion.
Golden Agri said: “Revenue from Indonesia agri-business decreased by 11.1 per cent from US$1,257.6 million in 1Q2012 to US$1,118.0 million, mainly due to lower average selling prices despite the higher sales volume during the period. The average CPO price was US$797 per tonne in 1Q2013, lower by 25.1 per cent as compared to the average of US$1,064 per tonne in 1Q2012.”
Amid current weak prices, the company remained confident about the longer-term outlook.
It said: “The long-term outlook for palm oil industry remains resilient as demand for palm oil is expected to grow, supported by continued strong primary demand for edible oils, substitute and alternative uses such as oleo-chemicals and biodiesel.”
“We will continue to increase our production of sustainable palm oil, as well as further improve operational efficiency and optimise our downstream value chain opportunities by commercially managing our plantation output and our downstream assets in strategic locations. We will also enhance our integrated operations by extending our distribution coverage and global market reach,” it added.
Net profit for the three months ended March 31 was US$112.8 million (S$140 million) as turnover fell 5.9 per cent to US$1.43 billion.
Golden Agri said: “Revenue from Indonesia agri-business decreased by 11.1 per cent from US$1,257.6 million in 1Q2012 to US$1,118.0 million, mainly due to lower average selling prices despite the higher sales volume during the period. The average CPO price was US$797 per tonne in 1Q2013, lower by 25.1 per cent as compared to the average of US$1,064 per tonne in 1Q2012.”
Amid current weak prices, the company remained confident about the longer-term outlook.
It said: “The long-term outlook for palm oil industry remains resilient as demand for palm oil is expected to grow, supported by continued strong primary demand for edible oils, substitute and alternative uses such as oleo-chemicals and biodiesel.”
“We will continue to increase our production of sustainable palm oil, as well as further improve operational efficiency and optimise our downstream value chain opportunities by commercially managing our plantation output and our downstream assets in strategic locations. We will also enhance our integrated operations by extending our distribution coverage and global market reach,” it added.