Rubber producer GMG Global has reported a 39 per cent drop in net profit to $14.1 million for the first half year.
This was on the back of a 11 per cent decrease in revenue to S$494.1 million for the six months ended June 30.
Market price of natural rubber continued to decline by as much as 21 per cent during the period to $3,621 per ton from $4,571 per ton in the corresponding period last year on weak economic data coming from the United States and China.
Both economies are major consumers of natural rubber globally.
The negative impact of falling natural rubber prices on the group's revenue was partly cushioned as sales tonnage increased by 12 per cent to 136,449 tons, thanks to higher contribution from GMG's Ivory Coast subsidiary, ITCA, and Belgium-based associate, Siat, in which GMG Global owns a 35 per cent stake.
Siat owns and invests in natural rubber and palm oil businesses in Cote d'Ivoire, Ghana, Nigeria and Gabon.
Earnings per share fell to 0.18 cents from 0.3 cents previously while net asset value per share grew to 11.28 cents compared to 10.23 cents as at Dec 31.
Meanwhile, prices of rubber continue to soften.
Natural rubber price was averaging US$2,100 (S$2,658) a ton in the week preceding the announcement.
Barring unexpected adverse global development, GMG expects prices for second half year to remain range-bound at current level.