Search

Budget 2015: What you need to know right now
BUDGET 2015 COVERAGE
Budget 2015: What you need to know right now

Income taxes will be hiked to shoulder massive investments.
6457 views

NEWS
AGRIBUSINESS | Staff Reporter, Singapore
Published: 23 Feb 12
920 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

LATEST AGRIBUSINESS JOBS »
  • No jobs posted on this category.
    PRINT ISSUE »

    Subscribe Now
    What factors are keeping expats rooted in Singapore?

    402 views

    What factors are keeping expats rooted in Singapore?

    446 views

    Can Asian private equity outgrow the west?

    140 views

    MOST READ EXCLUSIVES

    Singapore’s 10 most sought-after 40 and under investors

    Singapore’s 10 most sought-after 40 and under investors

    Check out who made the cut.

    by KRISANA GALLEZO
    19 Dec 2014 | 45205 views
     

    Singapore’s first permanent lifestyle market opens in Bukit Timah

    Singapore’s first permanent lifestyle market opens in Bukit Timah

    Over 20 brands and labels are gathered together under one roof.

    by KRISANA GALLEZO
    5 Jan 2015 | 32968 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 | 30511 views
     

    Singapore Business Review’s 2014 Class of 40 and under

    Singapore Business Review’s 2014 Class of 40 and under

    Meet a summa cumlaude graduate who rises from poverty to become JP Morgan’s head of corporate finance.

    by KRISANA GALLEZO
    12 Jan 2015 | 29438 views

    Find out the 10 most expensive districts to rent an HDB flat in Singapore

    Find out the 10 most expensive districts to rent an HDB flat in Singapore

    Glitzy Bukit Timah is off the list.

    by KRISANA GALLEZO
    19 Dec 2014 | 26849 views
     

    Singapore’s hot new restaurants in December

    Singapore’s hot new restaurants in December

    Japanese restos take over Singapore’s sizzling dining scene.

    by KRISANA GALLEZO
    17 Dec 2014 | 9390 views

    This food hub in Seah Street brings a throwback experience to dining

    This food hub in Seah Street brings a throwback experience to dining

    It offers an exciting lunch menu which changes every week.

    by KRISANA GALLEZO
    16 Jan 2015 | 6345 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 | 3266 views

    This startup created the world’s first bed sensor technology

    This startup created the world’s first bed sensor technology

    No more patients accidentally falling off hospital beds.

    by KRISANA GALLEZO
    14 Jan 2015 | 2701 views
     

    Too many business cards? Why don’t you try Sansan’s business card management service?

    Too many business cards? Why don’t you try Sansan’s business card management service?

    After Singapore, this contract management company plans to expand in the APAC region.

    by KRISANA GALLEZO
    12 Feb 2015 | 2604 views

    Go inside the gorgeous new headquarters of Ingredion in Singapore

    Go inside the gorgeous new headquarters of Ingredion in Singapore

    Its state-of-the-art kitchen space is not to be missed.

    by KRISANA GALLEZO
    18 Dec 2014 | 2575 views
     

    Spencer Ogden gets funky with its newest trademark space in Singapore

    Spencer Ogden gets funky with its newest trademark space in Singapore

    The company invested over $1M to make this signature office possible.

    by KRISANA GALLEZO
    5 Feb 2015 | 2448 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 | 2232 views
     

    Meet INSEAD’s new chairman of the board

    Meet INSEAD’s new chairman of the board

    Find out how Andreas Jacobs plans to bring “business as a force for good”.

    by KRISANA GALLEZO
    14 Jan 2015 | 2215 views

    Check out this integrated office cum lab of Friesland Campina in Singapore

    Check out this integrated office cum lab of Friesland Campina in Singapore

    A curved glass wall resulted in a 90% open-plan office.

    by KRISANA GALLEZO
    17 Feb 2015 | 2061 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 | 1977 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 | 1779 views
     

    What it’s like going into business with your significant other

    What it’s like going into business with your significant other

    A couple who founded an artisanal food outlet, P.Bistro, shares experience.

    by KRISANA GALLEZO
    9 Jan 2015 | 1739 views

    This could be your best pal when no one’s around to help during an emergency

    This could be your best pal when no one’s around to help during an emergency

    TagBio's ID-Life features accessories with critical info embedded in QR codes.

    by KRISANA GALLEZO
    16 Dec 2014 | 1493 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 | 1298 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 | 1292 views
     

    PocketMath makes buying mobile ad impressions easier

    PocketMath makes buying mobile ad impressions easier

    It integrates over 20 ad exchanges and offers over 20B impressions a day.

    by KRISANA GALLEZO
    9 Feb 2015 | 1290 views

    The heat is on: This office literally gets a bit hot for their green drive

    The heat is on: This office literally gets a bit hot for their green drive

    Discover how they execute their green initiatives in the office.

    by KRISANA GALLEZO
    22 Jan 2015 | 1245 views
     

    MetLife builds its first global R&D hub

    MetLife builds its first global R&D hub

    It bills itself as a first-of-its-kind innovation centre for the insurance industry.

    by KRISANA GALLEZO
    26 Jan 2015 | 1225 views

    FTMSGlobal Academy Singapore launches new weekend MBA

    FTMSGlobal Academy Singapore launches new weekend MBA

    The course fee is below $20,000.

    by KRISANA GALLEZO
    8 Jan 2015 | 1018 views
     

    Here’s how migrants can be sure their loved ones back home paid the doctor a visit

    Here’s how migrants can be sure their loved ones back home paid the doctor a visit

    This NRI-focused startup also gives migrants monthly feedback from the doctor.

    by KRISANA GALLEZO
    7 Jan 2015 | 930 views

    ENVision campaign‘s ‘hard truth’ could make you think twice

    ENVision campaign‘s ‘hard truth’ could make you think twice

    Singapore might run out of space for trash by 2035 and more.

    by KRISANA GALLEZO
    15 Dec 2014 | 745 views