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Golden Agri-Resources' Q2 profit surges 279% on deferred tax income

A DEFERRED tax income arising from an increase in tax-depreciable value of plantation assets helped lift Golden Agri-Resources' (GAR) financial results for the second quarter of 2016.

Net profit leapt 278.6 per cent to US$39.5 million from the previous year, the group said in a Singapore Exchange filing on Friday.

"For future tax benefit, GAR revalued some of its plantation assets in Indonesia resulting in substantial deferred tax income contributing to its current bottom line," the group said.

The net tax impact recorded from this revaluation in the quarter ended June 30 was US$104 million.

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Revenue for the quarter shrank 4.9 per cent to US$1.74 billion from the preceding year, due partly to lower production output, the company said.

Earnings per share jumped to 0.31 US cents from 0.08 US cents in the year-ago period. Net asset value per share inched up to 30 US cents as at June 30 from 29 US cents on Dec 31, 2015.

No dividend was proposed.

GAR shares closed at S$0.375 on Thursday.