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Golden Agri widens Q2 net loss to US$64.7m on soft CPO prices
PLANTATION owner Golden Agri-Resources (GAR) continued to take a hit from soft crude palm oil (CPO) prices in the second quarter, as it posted a net loss of US$64.7 million, against a US$39 million loss a year ago.
"Crude palm oil prices are expected to be range-bound," said GAR in its earnings statement on Wednesday night.
"Weather conditions, supply and demand for crude palm oil and other competing seed oils, and developments in government policy of the countries we operate in or trade with will continue to have an impact on the prices for commodities, including crude palm oil."
Revenue for the quarter ended June 30 dropped 16.7 per cent to US$1.6 billion, weighed by lower crude palm oil prices, while GAR reversed into an underlying loss of US$27.1 million compared with a profit of US$16.6 million a year earlier.
Loss per share came in at 0.51 US cent against 0.31 cent.
For the first half of the year, GAR saw net losses widen to US$46.4 million, compared with US$27.2 million for the year-ago period, even though it recorded a one-off gain on the disposal of subsidiaries.
Revenue was dragged lower by 13.9 per cent to US$3.2 billion by softer crude palm oil prices. The average international crude palm oil (FOB Belawan) price for the period was 21.6 per cent lower at US$496 per tonne versus US$632 per tonne in the same period last year.
GAR's total fresh fruit bunch and palm product output were also lower, following a bumper crop in 2018.
For H1, loss per share stood at 0.36 US cent, compared with 0.21 cent previously.
Net asset value per share was US$0.32 as at end-June this year, down slightly from US$0.33 as at end-December 2018.