Golden Agri-Resources reports US$21.93 million loss for Q4

SINGAPORE - Mainboard-listed Golden Agri-Resources posted on Friday a net loss of US$21.93 million for the fourth quarter ended Dec 31, 2014, compared to a net profit of US$122.98 million for the year-ago period, after revenue fell 4.2 per cent to US$1.82 billion.

For the full year, net profit fell 63.5 per cent to US$113.6 million, despite a 15.7 per cent increase in revenue to US$7.62 billion which was mainly due to the expansion of its palm downstream business.

Net profit was affected by its palm and laurics segment, which suffered lower refining margins and faced start-up costs for the group's new facilities and expansion in destination markets.

Looking ahead, the group expects its operating performance to be affected by fluctuating commodity prices, sustainability of the global economy, climatic conditions, as well as developments in Indonesia and China.

Said Golden Agri-Resources' chairman and CEO Franky O. Widjaja: "Our plantation business performed very well during the year and we will continue our efforts in unleashing the potential of our oil palm plantations through intensification by improving yield and cost efficiency.

"Our palm downstream business is progressing from a rapid expansion phase to a focus on optimisation of the downstream value chain. We will further open direct access to destination markets and extend our product portfolio to improve margins.

"We are also reviewing our business model and strategy for oilseed business in China to stabilise its performance."

"Palm oil continues to be the most consumed edible oil in the world, growing by about 3 per cent during the year. We expect support for CPO prices to come from the recently approved biodiesel subsidy by the Indonesian government and the slowdown in supply growth due to drought conditions last year."

The company proposed a final dividend of 0.177 cent per share, plus an interim dividend of 0.408 cent per share. This adds up to 0.585 cents per share for FY14, down from 1.10 cents for FY13.