Golden Agri profit slumps 19% to US$453m

The smaller earnings point to lower crude palm oil prices and poor sales.

In a release, Golden Agri-Resources Ltd and its subsidiaries (“GAR” or the “Company”) registered lower year-on-year performance for the first half 2012 with 19% decrease in EBITDA to US$453 million. The slowdown was largely attributable to lower Crude Palm Oil (“CPO”) prices coupled with a decrease in sales volume due to delayed shipments. Net profit stood at US$270 million, a 34% decline compared to last year.

Quarter-on-quarter EBITDA and net profit declined to US$200 million and US$108 million, respectively. GAR’s financial position as at 30 June 2012 remained healthy with strong cash balance and low net gearing ratio of 0.13 times. Total assets increased by 4% to US$12.4 billion since end of 2011.

GAR has been able to maintain its year-on-year fresh fruit bunch (“FFB”) production growth supported by larger area of mature plantations of approximately 27,800 hectares. FFB production (include plasma) for 1H 2012 grew by 4% to 4.2 million
tonnes from 4 million tonnes last year, while palm products output remained stable. Compared to the previous quarter, 2Q 2012 palm products output was 4% higher in line with its seasonality trend.

As at end June 2012, GAR’s total planted area was 457,000 hectares, remaining the largest in Indonesia. The age profile of GAR’s plantations is favourable, comprising 28% of immature and young plantations, and 46% in its prime age. With a low average age of 13 years of its plantations, the Company is well-positioned to maintain its long-term growth in production.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia