SINGAPORE (Nov 14): Golden Agri-Resources has swung back into the black with 3Q16 earnings of US$219.7 million ($311 million), on the back of higher crude palm oil (CPO) prices and deferred tax benefit.

Revenue for the quarter rose 17% to US$1.8 billion.

Third quarter EBITDA recovered to US$165 million. Despite weaker palm product output, Golden Agri-Resources managed to deliver better results compared to the same period last year, supported by its integrated business model and the appreciation of CPO market prices.

EBITDA for plantations and palm oil mills stood at US$90 million, 6% lower than a year ago due to weak recovery in output of fruit production in certain areas hit by severe El Nino conditions in 2015. EBITDA from palm and laurics stood at US$61 million, thanks to higher margins of 3.7% compared to 1.9% on improving operations and market conditions.

Golden Agri-Resources has revalued some of its plantation assets in Indonesia for future tax benefit, resulting in a substantial deferred tax income which contributed to the bottomline. The net tax revision was US$111 million in 3Q16.

“In the second half of 2016, we have seen the CPO market price maintain its current level amidst the recovering palm production,” says Franky Widjaja, chairman and chief executive officer, Golden Agri-Resources.

“For the 2016 results, we have achieved higher downstream margins so far resulting from our profit optimisation across the value chain,” he adds.

The company will continue to refine their destination sales capability and integrated business model for greater efficiency, according to Widjaja.

Golden Agri-Resources will also utilise agronomic practices such as higher yielding seeds and precision agriculture to maintain its position as a sustainable upstream planter.

Shares of Golden Agri-Resources closed up 1 cent at 39 cents on Monday.

Golden Agri-Resources swings back into profitability with 3Q earnings of US$220 mil

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Golden Agri-Resources swings back into profitability with 3Q earnings of US$220 mil

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