Golden Agri-Resources suffers hefty profit slump in Q2

A file picture of palm oil fruits at a palm oil plantation. PHOTO: REUTERS
A file picture of palm oil fruits at a palm oil plantation. PHOTO: REUTERS

SINGAPORE - Palm oil company Golden Agri-Resources on Monday (Aug 14) reported a 44.7 per cent fall in net profit in the second quarter.

The company blamed the fact deferred tax income was recognised in the same period a year earlier (2016).

Net profit came in at US$21.8 million (S$29.7 million) for the three months to June 30, while revenue ticked upwards by 0.8 per cent to US$1.8 billion.

Earnings per share for the quarter dropped to 0.17 US cents a share, against 0.31 US cents a share while the group's net asset value held steady at 32 US cents a share compared with Dec 31, 2016.

The company noted that it had seen a jump in revenue from its plantations and palm oil mills business, as crude palm oil market prices went up and palm production recovered from the 2015 El Nino weather phenomenon.

Net profit for the half-year dropped by 55.5 per cent to US$59.4 million even though revenue was 17.5 per cent higher, at US$3.8 billion.