Golden Agri's Q3 net profit down 65% to $37.8 million

Commodities player Golden Agri-Resources said its third quarter net profit fell 65 per cent to US$30.2 million (S$37.8 million).

Revenue for the three months ended Sept 30 dipped 6 per cent to US$1.57 billion.

The company said net profit for the nine months fell 47 per cent to US188.3 million.

Revenue for the nine months climbed 3 per cent to US$4.7 billion.

It said the lower profit was mostly due to weaker average selling prices of crude palm oil, higher inventory levels as well as higher plantation costs.

But the company continues to be confident about its performance and the industry outlook.

It was of the view that demand for palm oil will continue to grow, supported by strong primary demand for edible oils, increasing need for substitution to palm oil, as well as alternative uses such as specialty fats and biodiesel.

Golden Agri will expand its plantation hectarage and milling capacity, on top of extending its distribution and logistics capabilities.

Earnings per share for the third quarter was 0.24 US cent, lower than last year's 0.68 US cent.

Net asset value per share rose from 66 US cents as at Dec 31 to 67 US cents as at Sept 30.

Golden Agri has declared an interim cash dividend of 0.585 cent per share for the current financial period.