Bumitama Agri Q2 net profit down 39%

Bumitama Agri said in its exchange filing that palm oil prices will continue to be affected by the slowing global economy.
Bumitama Agri said in its exchange filing that palm oil prices will continue to be affected by the slowing global economy.PHOTO: BLOOMBERG

SINGAPORE - Palm oil producer Bumitama Agri reported a 39 per cent plunge in second quarter net profit to 107.6 billion rupiah, even as revenue slid 12.9 per cent to 1.38 trillion rupiah.

This was due to a lower average selling price of crude palm oil, and lower production output during the period.

However, this was offset slightly by stronger biodiesel sales.

The company said in its exchange filing that palm oil prices will continue to be affected by the slowing global economy.

"After suffering from low production during the first half of this year due to severe drought last year, we expect our production to start to recover in the second half of this year."

Earnings per share for the quarter was 61 rupiah, down from 100 rupiah a year earlier. Net asset value per share was 3,273 rupiah as at June 30, up from 2,979 rupiah as at Dec 31 last year.