Global Palm Resources swings into the red in Q1

INDONESIAN palm oil producer Global Palm Resources fell into the red for the first quarter as revenue slipped on lower prices for crude palm oil and palm kernel.

The mainboard-listed firm recorded a net loss of 2.6 billion rupiah (S$269,202) for the three months ended March 31, against a net profit of 12.7 billion rupiah a year ago. This translates to a loss of 12 rupiah per share, compared with a profit of 29 rupiah a share in the same period last year.

Revenue fell 3 per cent to 86.12 billion rupiah. As cost of sales rose by a fifth due to higher crude palm oil sales volume, this eroded its gross profit by 58 per cent to 10.8 billion rupiah.

The firm said that crude palm oil prices are expected to remain volatile in view of the uncertain global economic outlook and the effect of abnormal weather on market dynamics.

But rising food requirements from China, India, Indonesia and emerging markets, as well as demand from the biofuel, oleochemicals and feed industries, mean that demand for palm oil will remain strong, it added.