Halcyon Agri swings back into black with US$10.8m H2 profit

HALCYON Agri Corporation 5 VJ on Monday (Feb 28) posted a net profit of US$10.8 million for the second half of the year ended Dec 31, 2021, reversing from a net loss of US$13.4 million in the year-ago period.

This translates to earnings per share of US$0.0044, compared with loss per share of US$0.009 in the year before, according to the natural rubber supplier's results announcement.

Revenue for H2 climbed 39.3 per cent to US$1.3 billion, from US$938.6 million a year ago, mainly due to an increase in sales volume and an increase in revenue per tonne of US$399, as a result of higher natural rubber prices.

For the full year ended Dec 31, 2021, Halcyon Agri swung back into the black with a net profit of US$11.5 million, compared with a net loss of US$53.8 million in the year-ago period. Halcyon Agri did not declare any dividend for H2, unchanged from a year ago.

Revenue rose by 44 per cent to US$2.5 billion from US$1.7 billion, buoyed by higher sales volume and higher natural rubber prices. This was in line with improved downstream demand following the resumption of industrial activities as Covid-19 restrictions ease.

The group said sales volume rose 15.7 per cent year on year to around 1.4 million metric tonnes in FY2021, surpassing FY2019 levels. The group's revenue per tonne of US$1,793 was also higher by US$353 compared with last year - in line with pricing trends.

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Halcyon's key business segments - Halcyon Rubber Company and Corrie MacColl International – both delivered improved results. Meanwhile, Corrie MacColl Plantations continued to narrow its losses due to higher prices, conscious cost management and higher yields – in line with plantation maturity. 

Plantation yields in FY2021 was 24 per cent higher at 18,249 metric tonnes, compared with 14,701 metric tonnes in FY2020.

Looking forward, Halcyon Agri chief executive Li Xuetao said the group remains cautiously optimistic that operating conditions in FY2022 will remain robust. 

This bodes well for Halcyon Agri's natural rubber business, which thrives on global mobility and transportation, he added. 

The company's shares were trading 3.6 per cent or S$0.01 lower at S$0.265 as at 3.57 pm on Monday.