SINGAPORE (May 13): Golden Agri-Resources brushed aside softer average crude palm oil prices and lower output from El Nino-hit plantations to post 1Q16 earnings of US$94 million ($128.9 million), reversing from losses of US$3 million in 1Q15.

“The palm and lauric business continued its improvement since last year as the integration of downstream assets progresses,” Golden Agri said as trading closed on Friday.

Not including US$52 million worth of foreign exchange gains (net of non-controlling interests) and a US$2 million gain from changes in fair value of biological assets (net of tax and non-controlling interests), Golden Agri’s 1Q16 core net profit was 77% higher at US$40 million.

Revenue dipped 4% to US$1.49 billion, from US$1.55 billion in the corresponding quarter last year.

“As expected, the industry output was severely impacted by the El Nino last year,” said Goldren Agri Chairman and CEO Franky Widjaja. “Our expanded downstream assets have supported Golden Agri-Resources during this difficult period resulting in a good set of results for the Company.”

Revenue from Golden Agri’s plantation and palm oil mills segment was lower at US$303.8 million, from US$340.9 million in the previous corresponding period, mainly affected by the lower CPO prices and production output.

The average international CPO (FOB Belawan) price fell to US$596 per tonne in 1Q16, from US$636 per tonne in 1Q15

Revenue from its palm and laurics segment decreased by 9.9% to US$1.26 billion in 1Q16, mainly resulting from lower prices despite higher sales volume achieved, especially for destination markets.

Revenue from oilseeds segment increased by 30.6% to US$175.6 million in 1Q16, mainly attributable to increase in crushing volume.

“Notwithstanding periods of volatility, long-term fundamentals of the industry remain promising. The B20 biodiesel mixture mandate by the Government of Indonesia is progressing, providing long-term support to the palm oil industry,” Widjaja said.

Golden Agri closed 2.78% higher at 37 cents.