Golden Agri-Resources H1 net profit rises 4.4% to US$167.2 million on higher CPO prices

[SINGAPORE] Golden Agri-Resources posted a net profit of US$167.2 million for the first half of FY2026, up 4.4 per cent from US$160.3 million a year earlier.

This was supported by lower borrowing costs and foreign exchange gains, it said on Friday (Aug 14).

Revenue for the six months ended Jun 30 rose 7.3 per cent to US$6.6 billion from US$6.2 billion the year before, driven by higher international crude palm oil (CPO) prices and increased sales volume.

The average CPO free-on-board price for H1 was US$1,178 per tonne, an 8.1 per cent increase from US$1,090 per tonne in the same period last year.

The bottom line was also supported by lower net financial expenses, which dropped to US$69.2 million from US$82.1 million previously due to reduced borrowing costs.

The group recorded a net foreign-exchange gain of US$31.8 million for H1, reversing a net foreign exchange loss of US$23.9 million in the year-ago period. This was largely due to unrealised translation gains as the US dollar strengthened against the Indonesian rupiah, it said.

However, group earnings before interest, taxes, depreciation and amortisation fell 1.9 per cent to US$555.6 million from US$566.3 million, as lower output and higher administrative charges partially offset higher CPO prices.

Fresh fruit bunch production fell to 4.23 million tonnes from 4.36 million tonnes, while total palm product output was flat at 1.32 million tonnes.

Earnings per share stood at US$0.0132 for H1, up from US$0.0126 in the previous corresponding period.

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No dividend was declared for the half-year, unchanged from a year earlier. The company noted that it generally reviews its dividend distribution in H2.

On its outlook, Golden Agri-Resources said that the global vegetable oil market remains volatile amid geopolitical tensions, macroeconomic headwinds and shifting weather patterns.

However, CPO prices remain supported by structural supply constraints from limited acreage expansion, alongside sustained demand growth for food and oleochemicals, and expanding biofuel mandates, it added.

Shares of Golden Agri-Resources rose 1.8 per cent or S$0.005 to close at S$0.29 on Friday, after the results were announced.