Bumitama Agri’s 9M profit rises 29% with record rainfall in Central Kalimantan

[SINGAPORE] Palm oil producer Bumitama Agri posted a 29 per cent rise in net profit to 1.87 trillion rupiah (S$145.7 million) for the nine months ended Sep 30.

This was on the back of an 18 per cent rise in its nine-month revenue to 13.6 trillion rupiah, the company said in a business update on Thursday (Nov 13).

Bumitama’s revenue was buoyed by production recovery, which progressed as expected, and improved productivity. The output of fresh fruit bunches was up 8 per cent to 2.54 million tons.

“The respectable output performance occurred amid record-breaking rains in the Central Kalimantan estates during September,” Bumitama said, adding that the weather had hindered some deliveries.

Crude palm oil accounted for 84 per cent of its sales, while the remainder came from palm kernel.

Contributions from both rose during the 9M period, driven by increases in average selling prices from the year-ago period – by 17 per cent for crude palm oil, and 75 per cent for palm kernel.

SEE ALSO

SGX-listed plantation firms ride output gains, lure with dividends

“Improving industry prospects in the past five years have resulted in robust financial performance and paved the way for significant deleveraging,” the company said, adding that it expects Q4 to be the peak crop period of the year.

Its shares ended Thursday at S$1.48, down by S$0.02 or 1.3 per cent.