Search

NEWS
AGRIBUSINESS | Staff Reporter, Singapore
Published: 23 Feb 12
927 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?

989 views

What factors are keeping expats rooted in Singapore?

576 views

Can Asian private equity outgrow the west?

245 views

MOST READ EXCLUSIVES

16 items that are a tad cheaper in Singapore than in Hong Kong

16 items that are a tad cheaper in Singapore than in Hong Kong

Coffee lovers need not go farther for a cheaper cup of cappuccino.

by KRISANA GALLEZO
20 Mar 2015 | 99148 views
 

The 10 richest Singaporeans

The 10 richest Singaporeans

Altogether, their total amount of wealth dropped by 20% to US$32.5 billion.

by KRISANA GALLEZO
13 Apr 2015 | 96518 views

Singapore’s 8 hottest 40 and under hotel chefs

Singapore’s 8 hottest 40 and under hotel chefs

Check out and be inspired from their humble beginnings before rising the ranks.

by KRISANA GALLEZO
27 Mar 2015 | 13399 views
 

Chow Tai Fook opens second store in Singapore

Chow Tai Fook opens second store in Singapore

It's a 1,000-square feet new jewellery shop on Orchard Road.

by KRISANA GALLEZO
26 Feb 2015 | 12239 views

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

Find out what the three key platforms of CRIB are.

by KRISANA GALLEZO
10 Mar 2015 | 8161 views
 

The New Black hits Singapore with rarest green coffee

The New Black hits Singapore with rarest green coffee

It also boasts of its Impossible Collection curated by the ‘world’s rockstar roasters'.

by KRISANA GALLEZO
5 Mar 2015 | 4773 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 | 4385 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 | 4371 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 | 3498 views
 

Want to be hands-on with your ideal home setting?

Want to be hands-on with your ideal home setting?

Commune is opening an Experience Centre for meticulous homeowners.

by KRISANA GALLEZO
23 Mar 2015 | 2905 views

Office in the sky: How’s having a meeting in the clouds?

Office in the sky: How’s having a meeting in the clouds?

Check out ACL Asia Pacific’s Cumulonimbus, Altostratus and Cirrus rooms.

by KRISANA GALLEZO
1 Apr 2015 | 2774 views
 

Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

Find out what other goals the 27-year-old has for the company.

by KRISANA GALLEZO
27 Mar 2015 | 2376 views

LawCanvas saves the day: Easy legal documents in under a minute

LawCanvas saves the day: Easy legal documents in under a minute

The founders revolutionized the legal industry despite having different backgrounds.

by KRISANA GALLEZO
2 Mar 2015 | 2311 views
 

Take a look inside INSEAD’s $55m leadership development centre in Singapore

Take a look inside INSEAD’s $55m leadership development centre in Singapore

It marks the fulfillment of a vision too ambitious to achieve 15 years ago.

by KRISANA GALLEZO
1 Apr 2015 | 2307 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 | 1771 views
 

#OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

#OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

Rags to riches stories are fabulous, but here’s the real deal.

by KRISANA GALLEZO
27 Mar 2015 | 1019 views

Find out what it’s like going into business with your in-law

Find out what it’s like going into business with your in-law

A young entrepreneur teamed up with his father-in-law to redefine home entertainment needs.

by KRISANA GALLEZO
27 Mar 2015 | 776 views
 

What is the future of the sports business in Singapore?

What is the future of the sports business in Singapore?

Can a new billion-dollar stadium give Singapore the edge it needs to compete for world-class sporting events?

by STAFF REPORTER
20 Mar 2015 | 694 views

Fragrance Du Bois to launch a new scent this year

Fragrance Du Bois to launch a new scent this year

Also, check out its pop-up boutique at TANGS Orchard open until April 26.

by KRISANA GALLEZO
17 Apr 2015 | 415 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter