Golden Agri expects to be profitable despite Q4 fair value loss

THOUGH Golden Agri-Resources expects to record a fair value loss of US$230 million for the fourth quarter ending Dec 31, the palm oil company still expects to be profitable in Q4 and for the full financial year.

The mainboard-listed company said in a profit guidance on Tuesday (Dec 20) that the fair value loss was a result of changes in the fair value of its investments in Q4. Nevertheless, the resulting fair value of the financial asset is still “well above its investment cost”, it noted.

In addition, the group recorded a net profit of US$675 million for the nine months ended Sep 30, suggesting that its business model “remains intact and resilient”, it said.

“The group has been able to leverage its integrated business model and successfully extract value throughout the value chain, including optimising the usage of its facilities, logistic capabilities, product portfolio and geographical presence,” it added.

The profit guidance is based on a preliminary review of the financial information currently available to the group. Further details of Golden Agri’s financial performance will be released on or before Mar 1, 2023 when the company announces its unaudited consolidated financial results for FY2022.

Shares of Golden Agri closed flat at S$0.255 on Monday before the announcement.