IndoAgri sees 153.9b rupiah loss for Q3

SINGAPORE - Mainboard-listed Indofood Agri Resources posted a net loss for the third quarter, due to lower commodity prices and unrealised foreign currency losses, among other factors.

The group posted a net loss of 153.9 billion rupiah (S$15.8 million) for the three months to Sept 30, reversing from a net profit of 124.8 billion rupiah in the same period last year.

Revenue fell 9.3 per cent to 3.3 trillion rupiah because of lower contribution from the edible oils & fats (EOF) division, IndoAgri said. This was partially offset by higher external sales from the plantation division, it added.

Revenue from the EOF division fell 22 per cent, mainly due to lower sales volume and average selling prices.

Chief executive Mark Wakeford said: "Our fresh fruit bunches nucleus and crude palm oil production grew 2 per cent year on year to 2,443,000 tonnes and 719,000 tonnes respectively. Despite this, the group posted a soft third quarter, affected negatively by weakening commodity prices in all three of our main crops - palm oil, rubber and sugar."

"As of September 2015, we have 58,000 hectares of immature oil palm plantation, ensuring future volume growth," Mr Wakeford, who is also executive director, added.

The group made a loss of 110 rupiah per share for the three months. This was down from a profit of 88 rupiah per share last year. Net asset value per share was 10,198 rupiah as at Sept 30, down from 10,322 rupiah as at Dec 31 last year.

The group did not declare a dividend.

Looking ahead, IndoAgri said that the slowdown in plantings in Indonesia in the last five years, coupled with El-Nino event in 2015 would reduce incremental supply of crude palm oil.

The higher biodiesel blending mandate announced by Indonesia's government in March 2015, will likely sustain domestic demand growth for palm oil products, albeit over time, it added.