Golden Agri-Resources' Q1 net profit slips 8%

Golden Agri-Resources' net profit for first quarter slipped 8 per cent to US$103.9 million (S$130 million), from US$112.8 million. Earnings per share was 0.81 US cents compared to earnings per share of 0.88 US cents a year ago.

Revenue for the quarter ended March 31 jumped 33.8 per cent to US$1.91 million, from US$1.43 million a year earlier.

The palm oil processor cited revenue growth from both upstream plantation and downstream palm, lauric and oilseeds businesses. It also cited improved international crude palm oil (CPO) prices which helped boost profit margins.

Mr Franky Widjaja, Golden Agri's chairman and chief executive, said: "The industry experienced positive momentum starting from the second half of 2013 after the Indonesian Government's announcement to increase its biofuel targets.

"On the supply side, there is increasing evidence of a potential El Nino occurring in 2014, which historically is positive for palm oil prices. Meanwhile, we expect CPO prices to continue to be volatile as influenced by global economic conditions and crude oil prices."