Golden Agri eyes continued downstream diversification
This strategy could help offset firm's higher cost of production amid tough economic environment
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Uma Devi
Singapore
A FALL in crude palm oil (CPO) prices in the first half of this year could make 2020 challenging for the Singapore-listed palm oil counters, but Golden Agri-Resources (GAR) appears to be having a particularly tough time. The company, already loss-making, has a higher cost base and a more mature plantation profile than some of its peers. But management plans to make up for these various pressures by growing its downstream operations.
For the first half of the year, GAR sank deeper into the red with a net loss of US$156.9 million - compared to a net loss of US$46.4 million for the year-ago period. The decline was due in part to a foreign exchange translation loss and deferred tax expenses.
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