Golden Agri-Resources triples earnings for Q4

PALM oil plantation owner Golden Agri-Resources posted a net profit of US$239.6 million for its fourth quarter ended Dec 31, 2019, triple the US$79.3 million a year ago.

This was mainly due to strengthening palm oil prices during the quarter and a net fair value gain on financial assets amounting to US$214 million, the company said on Friday.

Earnings per share stood at 1.88 US cents for the quarter, up from 0.62 US cent a year ago.

Revenue for Q4 edged up 3 per cent to US$1.7 billion, from US$1.65 billion in the previous year.

A final cash dividend of 0.58 Singapore cent per share was proposed for the year, unchanged from a year ago. Once approved by shareholders at the April 27 annual general meeting, the dividend will be paid on May 18, following books closure on May 6.

For the full year ended Dec 31, net profit came in at US$194 million, reversing from a net loss of US$1.8 million a year ago. Meanwhile, revenue for the 12-month period slipped 10.3 per cent to US$6.43 billion, as weaker crude palm oil prices and plantation output impacted revenue.

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Looking ahead, the company said that it is confident in the long-term supply and demand fundamentals for palm oils, supported by global demand growth, including that for biodiesel. It added that impact from the novel coronavirus is expected to be short term, though this will depend on the severity and length of the outbreak.

Golden Agri-Resources shares closed flat at 20.5 Singapore cents on Thursday.