Golden Agri-Resources saw its 2Q earnings more than doubled to US$39 million ($54.6 million), supported by higher plantation output and improved palm downstream operations.
Revenue rose 18% for the quarter to US$1.8 billion on the back of stronger sales volumes. Upstream business was stronger in 2Q due to higher production, but was not enough to compensate for lower production output and crude palm oil prices for the half way ended June.
Its palm and lauric business improved. Quarterly EBITDA grew to US$32 million with a 2% margin, stronger than 1.7% last year.
Oilseed and other segments achieved quarterly EBITDA of US$3.3 million, from US$6.5 million a year ago, amid improved oilseed business environment in China.
Palm product output in 2Q was 717,000 tonnes, up 13% in the period, in line with seasonal trend.
“Short-term catalysts to CPO price are expected to come from lower output resulting from the El Nino condition, and increased domestic demand with the implementation of biodiesel mandates and subsidy by the Indonesian government.
“We continue to focus on optimising our integrated value chain, yield improvement, cost efficiency and implementation of our sustainability initiatives,” says Franky Widjaja, GAR’s Chairman and CEO.
The group manages planted area of about 484,472 hectares with the average age of the trees is some 15 years. Replanting efforts are on the way to support sustainable growth.
GAR closed 4.7% lower at 30.5 cents on Wednesday.
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Revenue rose 18% for the quarter to US$1.8 billion on the back of stronger sales volumes. Upstream business was stronger in 2Q due to higher production, but was not enough to compensate for lower production output and crude palm oil prices for the half way ended June.
Its palm and lauric business improved. Quarterly EBITDA grew to US$32 million with a 2% margin, stronger than 1.7% last year.
Oilseed and other segments achieved quarterly EBITDA of US$3.3 million, from US$6.5 million a year ago, amid improved oilseed business environment in China.
Palm product output in 2Q was 717,000 tonnes, up 13% in the period, in line with seasonal trend.
“Short-term catalysts to CPO price are expected to come from lower output resulting from the El Nino condition, and increased domestic demand with the implementation of biodiesel mandates and subsidy by the Indonesian government.
“We continue to focus on optimising our integrated value chain, yield improvement, cost efficiency and implementation of our sustainability initiatives,” says Franky Widjaja, GAR’s Chairman and CEO.
The group manages planted area of about 484,472 hectares with the average age of the trees is some 15 years. Replanting efforts are on the way to support sustainable growth.
GAR closed 4.7% lower at 30.5 cents on Wednesday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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