Regional palm oil stocks book solid Q1, but cost pressures, CPO price correction loom

SOUTH-EAST Asian companies in the crude palm oil (CPO) space have had another stellar quarter as elevated prices of the commodity have boosted their revenue and sales figures, and lifted profits. But the industry could run out of steam over the coming months, market watchers warned.

Across the board, listed CPO companies in the region appear to have booked stronger financials in the first quarter of 2022, as stocks enjoyed higher average selling prices and stronger demand for the commodity. Year to date, CPO futures are up about 51 per cent. 

In Singapore, the 4 counters that reported updates for Q1 saw profits and revenues rise on a year-on-year basis. Pure plays Bumitama Agri and First Resources showed the biggest improvements.