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15-05-2014, 08:15 AM
Lower Q1 earnings but higher revenue for plantation group
Published on May 15, 2014 1:09 AM
By Grace Leong
GOLDEN Agri-Resources posted slightly lower first-quarter earnings from a year earlier on lower refining margins amid tight crude palm oil supply and a challenging operating environment in China for oilseeds.
Net profit slipped 8 per cent to US$104 million (S$130 million).
Revenue, however, jumped 33.8 per cent to US$1.91 billion owing to higher sales of palm and laurics, higher output from plantation and palm oil mills and average international crude palm oil prices climbing to US$865 a tonne from US$797 a tonne.
The mainboard-listed palm plantation group said its fresh fruit bunch output for the quarter jumped 4.4 per cent to 2.24 million tonnes, while palm product output for the quarter grew to 691,000 tonnes from 664,000 tonnes a year ago.
Earnings per share was 0.81 US cents, down from 0.88 US cents a year earlier.
Net asset value per share as at March 31 was 69 US cents, up from 68 US cents as at Dec 31 last year.
Mr Franky Widjaja, Golden Agri's chairman and chief executive, said: "Demand growth is expected to continue in both food and non-food usage which include biodiesel and oleo-chemicals. The industry experienced positive momentum starting from the second half of 2013 after the Indonesian government's announcement to increase its biofuel targets.
"On the supply side, there is increasing evidence of a potential El Nino occurring this year, which historically is positive for palm oil prices. Meanwhile, we expect CPO prices to continue to be volatile as influenced by global economic conditions and crude oil prices."
The outlook for the palm oil industry is expected to remain positive, supported by robust primary demand growth for edible oils, substitutes and alternative uses such as oleo-chemicals and biodiesel, while supply growth is limited, the company said.
But the group's operating performance will be affected by the sustainability of the global economic recovery, climatic conditions, as well as developments in Indonesia and China, it said.
gleong@sph.com.sg
Background story
POSITIVE OUTLOOK
Demand growth is expected to continue in both food and non-food usage... The industry experienced positive momentum starting from the second half of 2013 after the Indonesian government's announcement to increase its biofuel targets.
- Mr Franky Widjaja, Golden Agri's chairman and CEO
Published on May 15, 2014 1:09 AM
By Grace Leong
GOLDEN Agri-Resources posted slightly lower first-quarter earnings from a year earlier on lower refining margins amid tight crude palm oil supply and a challenging operating environment in China for oilseeds.
Net profit slipped 8 per cent to US$104 million (S$130 million).
Revenue, however, jumped 33.8 per cent to US$1.91 billion owing to higher sales of palm and laurics, higher output from plantation and palm oil mills and average international crude palm oil prices climbing to US$865 a tonne from US$797 a tonne.
The mainboard-listed palm plantation group said its fresh fruit bunch output for the quarter jumped 4.4 per cent to 2.24 million tonnes, while palm product output for the quarter grew to 691,000 tonnes from 664,000 tonnes a year ago.
Earnings per share was 0.81 US cents, down from 0.88 US cents a year earlier.
Net asset value per share as at March 31 was 69 US cents, up from 68 US cents as at Dec 31 last year.
Mr Franky Widjaja, Golden Agri's chairman and chief executive, said: "Demand growth is expected to continue in both food and non-food usage which include biodiesel and oleo-chemicals. The industry experienced positive momentum starting from the second half of 2013 after the Indonesian government's announcement to increase its biofuel targets.
"On the supply side, there is increasing evidence of a potential El Nino occurring this year, which historically is positive for palm oil prices. Meanwhile, we expect CPO prices to continue to be volatile as influenced by global economic conditions and crude oil prices."
The outlook for the palm oil industry is expected to remain positive, supported by robust primary demand growth for edible oils, substitutes and alternative uses such as oleo-chemicals and biodiesel, while supply growth is limited, the company said.
But the group's operating performance will be affected by the sustainability of the global economic recovery, climatic conditions, as well as developments in Indonesia and China, it said.
gleong@sph.com.sg
Background story
POSITIVE OUTLOOK
Demand growth is expected to continue in both food and non-food usage... The industry experienced positive momentum starting from the second half of 2013 after the Indonesian government's announcement to increase its biofuel targets.
- Mr Franky Widjaja, Golden Agri's chairman and CEO