Golden Agri Q1 net profit falls 84% on lower CPO prices

GOLDEN Agri-Resources net profit fell sharply by 84 per cent to US$17.2 million in the first quarter ended March 2015 from a year ago due to softer crude palm oil prices and lower plantation output.

Revenue fell 19 per cent to US$1.55 billion from US$1.91 billion while Ebitda (earnings before interest, taxes, depreciation and amortisation) slipped 37 per cent to US$126.4 million.

Revenue from plantation and palm oil mills segment declined 32 per cent to US$340.9 million mainly due to weaker average CPO prices and lower production output affected by dry weather conditions in certain Indonesian regions last year.

The average international CPO (FOB Belawan) price fell 26.5 per cent from US$865 per tonne in the first quarter of the previous financial year to US$636 per tonne over the current period.

Lower CPO prices and higher production costs per tonne led ebitda margin from the plantation and palm oil mills segment to fall to US$100.6 million from US$171.6 million.

The palm and laurics segment saw revenue fall 14.4 per cent to US$1.4 billion due to lower average selling price despite higher sales volume while revenue in the oilseeds segment declined 36 per cent to US$134.5 million on the back of lower selling prices and lower crushing volume.

The firm said it expects its operating performance to continue to be affected by fluctuating commodity prices, sustainability of the global economic recovery, climatic conditions and developments in Indonesia and China.

Earnings per share for the period slid to 0.13 US cents from 0.81 US cents. No dividend was recommended.