, Singapore

Golden Agri-Resources sinks to $135m net loss in Q1

Its earnings shrank following the new crude palm oil export tax and levy.

Golden Agri-Resources (GAR) reversed into a $134.95m (US$95m) net loss in Q1, from a $25.58m (US$18m) profit in Q1 2019, the company revealed in an SGX filing. Revenue climbed 2% YoY to $2.34b (US$1.65b) at the same time.

Despite recording higher average selling prices, the firm saw higher costs, including the newly implemented crude palm oil (CPO) export tax and levy, which resulted in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) falling to $119.32m (US$84m).

Its plantations and palm oil mills segment accounted for most of their EBITDA, gaining from higher CPO market prices despite lower plantation output. However, its downstream business was hit by higher input prices due to severe supply chain disruption.

“Although short-term volatility is expected with the current uncertainties of the COVID-19 outbreak, we believe the CPO price will recover once the pandemic subsides and inventories in consuming countries are replenished,” GAR chairperson and CEO Franky Widjaja said.

As at 31 March, GAR’s planted area stood at 499,000 hectares, of which 21% owned by plasma smallholders.

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