Bumitama Agri Q4 net profit up 9.7% to 292 billion rupiah

PALM oil producer Bumitama Agri reported net profit of 292.3 billion rupiah (S$30.5 million) for its fourth quarter ended Dec 31, 2015, up 9.7 per cent from a year ago.

Revenue fell 7.8 per cent to 1.45 trillion rupiah mainly due to lower selling prices offset by increased volumes.

But a higher amount of profit was due to the company's share in entities it controlled compared to a year ago.

A fair value loss of 46 billion rupiah from fair value changes to biological assets was recognised for the year, up from 38 billion rupiah a year ago.

A first and final dividend was declared but the amount was not mentioned in the announcement, compared with a dividend of 1.5 Singapore cents a year ago.

The company said that weak global economic outlook, ample supply of oilseeds, and stagnating demand from China have adjusted palm oil prices.

But the low production cycle and expected implementation of bio-diesel mandates in Indonesia and Malaysia have supported palm oil prices recently, it said.

"The group continues to focus on various initiatives of productivity enhancement, operational efficiency, and effectiveness and capacity building."

The counter last traded at S$0.765.