Golden Agri Resources back in the black with $270.60m profits in 2019

The removal of export levies in Indonesia lifted its palm and laurics segment.

Golden Agri Resources popped the champagne for 2019 as profits recovered to $270.60m (US$193.98m) from a $2.47m (US$1.77m) loss in the previous year, according to its financial statement.

Despite weaker crude palm oil (CPO) prices, the improved performance of GAR’s palm, laurics and others segment lifted earnings and offset the 10.3% YoY dip in revenue to $8.97b (US$6.43b) from $1.63b (US$1.17b).

The revenue from GAR’s plantation and palm oil mills segment decreased by 8.8% to $1.84b (US$1.32b), mainly attributable to lower CPO prices and production output. The average international CPO (FOB Belawan) price for the current year was US$523 per tonne, 7.4% lower as compared to US$565 per tonne in the previous year.

Total fresh fruit bunch (FFB) and palm product output for the year decreased to 9,871,000 tonnes and 2,913,000 tonnes respectively as compared to 10,525,000 tonnes and 3,049,000 tonnes respectively in the previous year, primarily affected by the dry weather conditions and the replanting programme.

The revenue of GAR’s palm, laurics and others segment slipped 10% to $8.92b (US$6.39b) no thanks to softer CPO prices and lower sales volume for oilseeds in China, which was offset by the strong demand for biodiesel in Indonesia.

Despite lower prices, EBITDA rose from $257.04m (US$184.2m) in 2018 to $555.25m (US$397.9m) mainly due to additional contribution from biodiesel and the removal of export levy in Indonesia in Q4 2018 as well as higher allocated net fair value gain on financial assets which is recorded as part of the other operating income.

For Q4 2019, profits doubled to $334.29m (US$239.56m) whilst revenue climbed 3% to $2.37b (US$1.7b).

The board declared a final dividend of 58 cents per share.

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