Search

NEWS
AGRIBUSINESS | Staff Reporter, Singapore
Published: 23 Feb 12
912 views


Wilmar International turns more cautious on oilseed & grain division

The group flagged that oilseeds &grains may only breakeven in FY12 if operating conditions nin China do not improve.

CIMB reports that at its 4Q11 results briefing, Wilmar guided that oilseed&grain margins will remain suboptimalasit expectsoperating conditionsin China to remain toughin 2012 fromovercapacity.

It is more upbeat on its palm & laurics division as it expects its Indonesian refineriesto book higher profit marginsfollowingrecent changes in the country’s export tax for palm products.Refining margins outside Indonesia have also improved in 1Q12against 4Q11.

The group willbe raising its Indonesian refining capacity by 50% in2Q-3Q12, tohelpboost refining margins. Current refining capacityin Indonesia isaround7m tonnes, or 30% of the group’s globalrefining capacity.


CIMB however notes that it becomes more pessimistic after the briefing as the group flagged that oilseeds &grains may only brea kevenin FY12if operating conditions do not improve or it is unable to purchase feedstockbetter than its peers. “This division made up 20% of FY11 pretax profit.The compensatingfactor could be qoq improvements in refining margins. We also expect consumer products to fare better with the aid of higher selling prices for cooking oils in China.Sugar earnings should, moreover,improve from higher production,” she said.


What went wrong in 4Q11?

Demandwasgenerallyweak in 4Q due to the euro debt crisis and uncertain global economies. This affectedthegroup’s bargaining power, says CIMB noting that the group also scaled back its trading and risk exposure to avoid customer defaultsor bad debts, leading to lower trading profits. As such, oilseeds&grains as well as palm& laurics profit marginswere affected.

The group’s Indonesian refineries havebeen benefitting from Indonesian export tax changes in Oct 11 and were able to chalk up US$60-70/tonne profit marginsfor refined palm oil exportedand US$30-40/tonneprofitsfor domestic cooking oil in Indonesia. Out of the 1.4m-1.5m tonnes of palm oilrefined in Indonesia during the quarter, around 20% was soldto the local market. Despite the better refining margins in Indonesia,overall refining margins were not higherqoq due to low-to-negative refining margins in Malaysia, China, India and Europe, said CIMB. Overallrefining margins in fact fell qoq to US$20.30per tonnein 4Q from US$29 in 3Q11. Oilseed&grain earnings were down98%qoqto US$1.7m in 4Q.
 



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: Wilmar International, Wilmar International profits

CO-WRITTEN ARTICLES & SPONSOR CONTENT ››

Here's why Concorde Hotel Singapore and Putrajaya International Convention Centre lead the way in technology and building efficiency.
328 views

LATEST AGRIBUSINESS JOBS »
PRINT ISSUE »

Subscribe Now
What factors are keeping expats rooted in Singapore?

25 views

Can Asian private equity outgrow the west?

3 views

15 smart ideas to outwit the wiliest investment wolves this Year of the Sheep

11 views

MOST READ EXCLUSIVES

Singapore's 12 most influential business professors under 40

Singapore\'s 12 most influential business professors under 40

The youngest is aged 34.

by KRISANA GALLEZO
23 Oct 2014 | 70927 views
 

11 craziest credit card purchases in Singapore

11 craziest credit card purchases in Singapore

Find out if each is worth the outlay.

by KRISANA GALLEZO
22 Sep 2014 | 50292 views

Singapore’s 7 hot new restaurants in September

Singapore’s 7 hot new restaurants in September

Have you checked out a very secretive cafe at 48 ¾ Niven Road?

by KRISANA GALLEZO
6 Oct 2014 | 26471 views
 

Singapore’s top 5 work from home jobs

Singapore’s top 5 work from home jobs

Here are jobs that you can do while sitting on your couch or in your favorite coffee shop.

by KRISANA GALLEZO
11 Dec 2014 | 14283 views

Check out General Motors’ new HQ in Singapore

Check out General Motors’ new HQ in Singapore

A ‘hot desks’ rule is implemented in the new office.

by KRISANA GALLEZO
3 Oct 2014 | 12282 views
 

Singapore’s 10 favorite meals on wheels

Singapore’s 10 favorite meals on wheels

You better cut the pizza: An Italian dish bagged the number 1 spot.

by KRISANA GALLEZO
17 Oct 2014 | 11953 views

Don’t settle for less: Legendary Hong Kong brings authentic and traditional HK dishes to Singapore

Don’t settle for less: Legendary Hong Kong brings authentic and traditional HK dishes to Singapore

The restaurant’s construction cost over a million dollars.

by KRISANA GALLEZO
3 Nov 2014 | 7322 views
 

Get ready to work and play at Spotify’s regional office

Get ready to work and play at Spotify’s regional office

All the furniture except the bean bags were imported from Sweden.

by KRISANA GALLEZO
23 Sep 2014 | 5315 views

Opera Estate welcomes a little bar simply called ‘Slake’

Opera Estate welcomes a little bar simply called ‘Slake’

It wants to be your living/dining room outside of home.

by KRISANA GALLEZO
25 Sep 2014 | 4761 views
 

The new Acronis HQ will make you feel like ‘walking into blue space’

The new Acronis HQ will make you feel like ‘walking into blue space’

Also, check out photos of its 7-eleven-like pantry amenities.

by KRISANA GALLEZO
28 Oct 2014 | 4440 views

Sofitel in Sentosa launches world's largest So SPA

Sofitel in Sentosa launches world\'s largest So SPA

Future plans are finally revealed.

by KRISANA GALLEZO
22 Oct 2014 | 4004 views
 

Will you take up the challenge to live on $5 a day and share the experience?

Will you take up the challenge to live on $5 a day and share the experience?

This campaign already generated over 8,000 followers on Facebook.

by KRISANA GALLEZO
23 Sep 2014 | 3160 views

Want to know a ‘smart’ way to have your clothes washed?

Want to know a ‘smart’ way to have your clothes washed?

My Laundry Box introduces a smart laundry locker platform that works with an app.

by KRISANA GALLEZO
17 Oct 2014 | 3124 views
 

Could this be the most intelligent phonebook app yet?

Could this be the most intelligent phonebook app yet?

It’s self-updating and removes duplicates for worry-free contacts storage.

by KRISANA GALLEZO
29 Sep 2014 | 3033 views

Arete Culture opens first store in Lam Soon Building

Arete Culture opens first store in Lam Soon Building

It's a one-stop shop for your quirky interior decors.

by KRISANA GALLEZO
24 Sep 2014 | 2978 views
 

Do you want to build your own bike?

Do you want to build your own bike?

This store allows owners to creatively piece bike parts on their own.

by KRISANA GALLEZO
28 Oct 2014 | 2337 views

Hippy Tyrwhitt Road welcomes a resto-bar offering an all-day happy hour

Hippy Tyrwhitt Road welcomes a resto-bar offering an all-day happy hour

See how a radio DJ pursued his love for food.

by KRISANA GALLEZO
20 Oct 2014 | 1957 views
 

Singapore’s first news aggregation app attracts 1 million users in two years

Singapore’s first news aggregation app attracts 1 million users in two years

Stay in the loop with news and lifestyle content from SBR and 600 other publishers.

by KRISANA GALLEZO
10 Dec 2014 | 1243 views

This device is making a statement that hand-waving gestures are not usable

This device is making a statement that hand-waving gestures are not usable

It's a creation by 3 young computer wizards from Singapore.

by KRISANA GALLEZO
25 Sep 2014 | 1170 views
 

World Cup 2014 might have ended but this anti-gambling campaign is far from over

World Cup 2014 might have ended but this anti-gambling campaign is far from over

Many suggested to put it down amidst criticism, but Goodfellas cannot be stunned.

by KRISANA GALLEZO
15 Oct 2014 | 1137 views

Jack Wills opens its first store in Singapore

Jack Wills opens its first store in Singapore

A 'fun' brand that values the Brit vibe. Put your game face on!

by KRISANA GALLEZO
10 Dec 2014 | 1099 views
 

What Singaporean investors can expect from Okinawa’s development

What Singaporean investors can expect from Okinawa’s development

A 40% tax cut in setting up business is expected to lure investors.

by KRISANA GALLEZO
12 Dec 2014 | 934 views

Now, hear this: You won't believe what your ears are seeing

Now, hear this: You won\'t believe what your ears are seeing

Ubersnap lets you upload photos with background music.

by KRISANA GALLEZO
2 Oct 2014 | 878 views
 

Kungfumath wants to revamp boring e-learning portals

Kungfumath wants to revamp boring e-learning portals

“Play with numbers” in its literal sense.

by KRISANA GALLEZO
5 Dec 2014 | 691 views

The future of innovation: What’s next after Facebook and Twitter?

The future of innovation: What’s next after Facebook and Twitter?

A video version of Twitter might be under way.

by KRISANA GALLEZO
11 Dec 2014 | 627 views
 

SFIC Institute's new training hub overhauls carpenters' career image

SFIC Institute\'s new training hub overhauls carpenters\' career image

It’s the first carpentry training center in Singapore’s furniture industry.

by KRISANA GALLEZO
10 Dec 2014 | 597 views

Inverted Edge gives spotlight to all independent contemporary fashion designers

Inverted Edge gives spotlight to all independent contemporary fashion designers

The homegrown startup has raised US$1.6M total funding in two years.

by KRISANA GALLEZO
3 Nov 2014 | 593 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter