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Golden Agri-Resources Q3 profit jumps but El Nino looms
[SINGAPORE] Singapore-listed palm oil firm Golden Agri-Resources Ltd said third-quarter net profit more than tripled to US$15.7 million due to lower raw material costs, but it warned the El Nino weather pattern would severely affect coming quarters.
The company, controlled by the Widjaja family in Indonesia, added that rain in recent days had helped in battling fires and haze in Indonesia.
The company said its result was boosted by lower average prices for crude palm oil ("CPO") during the quarter.
Golden Agri, the world's second-largest palm oil planter by acreage, reported revenue of US$1.57 billion, down 14.6 per cent from a year earlier. Palm oil prices have recovered somewhat from lows at the end of August but El Nino will hit supply in early 2016, chairman Franky Widjaja said in a statement.
However, he added that domestic demand would increase from a mandate for biodiesel use.