As of September, production dipped 21.1%.
Golden Agri Resources may now be back on its feet after it swings back to a profit of $310m. However, its fresh fruit bunch (FFB) yields may see an overall decline for the whole year.
According to UOB KayHian, FFB production already dipped 21.1% to 5.74m tonnes in 9M16.
"We maintain our FFB production growth forecast of -16% yoy for 2016, which is in line with management’s guidance of a 15-20% yoy decline," the brokerage firm said.
More so, UOB noted how Golden Agri expects FFB production to come in stronger for the last quarter of the year, with 60% of the production ratio coming from 2H16.
"Meanwhile, we are expecting 2017-18 FFB production growth of 6.8% yoy and 9.2% yoy respectively as production is expected to recover as rainfall has been good in 1H16 and there has been no further stress on trees," UOB KayHian forecast.
Do you know more about this story? Contact us anonymously through this link.