GMG Global widens losses in Q2

RUBBER producer GMG Global widened its losses in the second quarter, although gains in other operating income and foreign exchange helped to partially offset a slump in revenue.

The group recorded a net loss of S$13.3 million for the three months ended June 30, against S$9.2 million in the same period a year ago.

Revenue fell 17 per cent to S$137.1 million due to lower selling prices, though this was partially mitigated by favourable exchange translation rate.

The group is expecting rubber prices to remain range-bound at current levels for the rest of the year. Rubber averaged US$1,278 per tonne in June, it said.

"We continue to focus on increasing sales volume and sales premium, managing costs and improving on productivity to improve performance," it said in its results. "At the same time, the group continues to strengthen and enhance risk management in order to manage the exposure to foreign exchange and commodity price risks."

It added that it will also eventually appoint an independent financial adviser to advise directors on the offer by Halcyon Agri Corporation when the latter makes a formal offer for the company.

Halcyon Agri has said it will make a voluntary general offer for GMG Global - majority owned by Sinochem International - involving a share swap of 0.9333 Halcyon share for each GMG Global share as part of a multi-part deal.