SINGAPORE - Second quarter results at palm oil producer Golden Agri-Resources were hit by low plantation output following the severe El Niño weather cycle.
But while revenue for the quarter ended June 30 dipped 4.9 per cent to US$1.7 billion (S$2.3 billion), the company still managed to record an almost four-fold surge in net profit to US$39.5 million.
Earnings were lifted by deferred tax income arising from the increase in tax depreciable value of the company's plantation assets. The company revalued some of its plantation assets in Indonesia resulting in substantial deferred tax income contributing to its bottom line. The net tax impact recorded from this revaluation was US$131 million in the first half, including US$104 million in the second quarter.
Chairman and chief executive officer Franky Widjaja said the company expects better results in the second half of the year due to larger harvest volumes.
"Positive developments include restocking activities in large consuming countries, potential La Niña conditions, and further implementation of Indonesia's biodiesel mandate," he added.
Earnings per share for the quarter was 0.31 US cent, up from 0.08 US cent in the same period a year ago.
Net asset value per share was 30 US cents as at June 30, from 29 US cents as at Dec 31 last year.