Kencana Agri narrows FY2019 net loss to US$12.8m

KENCANA Agri on Friday posted a net loss of US$12.8 million for FY2019, narrowing from a loss of US$23.8 million a year ago.

The net loss was mainly due to lower average selling prices (ASP), impairment of receivables, shares of loss from equity-accounted joint venture and write-off of deferred tax assets.

Revenue shrank 17 per cent to US$104.1 million, mainly due to lower ASP of crude palm oil and lower sales volume. Loss per share was 4.47 US cents versus 8.31 cents in the previous year.

Kencana chairman Henry Maknawi noted that palm oil prices strengthened in the later part of Q4 2019, due to lower production and the increased biodiesel mandate in Indonesia and Malaysia, and the improvement continued into 2020 until the start of the Covid-19 outbreak.

"How this will pan out for the year remains uncertain," he said, adding: "We will continue to focus on our operational efficiency."

Separately, the plantation company announced that Albert Maknawi has resigned as chief operating officer effective March 1, but will remain chief executive officer of the group. Kencana has appointed Tonny Hermawan to take his place.

Kencana shares last traded at S$0.141 on Monday, up 0.5 cent or 3.68 per cent.