Golden Agri posts worst quarterly results in 11 years

[SINGAPORE] Palm oil company Golden Agri-Resources Ltd said its third-quarter net profit slid 86 per cent to US$4.4 million, the worst quarter in 11 years, weighed down by weak palm oil prices as well as challenging oilseeds business in China.

Golden Agri, the world's second-largest oil palm planter by acreage, said its oilseeds business in China was in the red for the quarter and the first nine months of the year, while a drop in prices had weighed on the performance of its palm plantation and processing business.

"Industry fundamentals remain strong as demand for palm oil is expected to increase, supported by robust primary demand growth for both food and non-food usage, which includes biodiesel and oleochemicals, while supply growth is expected to moderate," the company said in a statement.

REUTERS