SINGAPORE (Mar 1): Palm oil producer Golden Palm Resources Holdings recorded losses of Rp3.9 billion ($0.4 million) for the 4Q ended December on the back of foreign exchange losses and lower other income, compared to earnings of Rp12.4 billion a year ago.
This brings full-year earnings down 8% to Rp42.7 billion for FY17, from Rp46.4 billion a year ago.
4Q17 revenue fell 13% to Rp105.7 billion, from Rp122.2 billion a year ago.
This was mainly due to the decrease in crude palm oil (CPO) sales revenue, which fell 17% to Rp91.8 billion in 4Q17 on a decrease in CPO sales volume, partially offset by higher CPO average selling price.
The decline was partially mitigated by a 19% decrease in palm kernel (PK) sales revenue Rp13.9 billion in 4Q17 on a higher PK average selling price, partially offset by lower PK sales volume.
Gross profit tumbled 32% to Rp22.7 billion during the quarter, as gross profit margin fell 5.7 percentage points to 21.5%.
4Q EBITDA tumbled 84% to Rp4.7 billion, from Rp29.7 billion a year ago.
The group incurred a net foreign exchange loss of Rp4.1 billion in 4Q17 due to the depreciation of Indonesian rupiah against the Singapore dollar, compared to a foreign exchange gain of Rp7.2 billion a year ago.
Other decreased by Rp3.6 billion, from Rp3.4 billion in 4Q16, mainly due to a decrease in sales of sludge oil.
As at end December, cash and cash equivalents stood at Rp382.8 billion.
Golden Palm Resources has recommended a first and final dividend of 1 cent per share for FY17. It had declared a first and final dividend of 3.01 cents per share a year ago.
Looking ahead, the group says CPO prices are expected to remain volatile considering the uncertainty in the global economy and abnormal weather’s effect on market dynamics.
“Outlook for the global economy has improved and the demand for palm oil is expected to remain strong in view of rising food requirements from China, India, Indonesia and emerging markets, as well as demand from the biofuel, oleochemicals and compound feed industries. Nevertheless the supply of palm oil is also expected to increase resulting in range bound prices,” says Dr Suparno Adijanto, executive chairman and CEO.
“The management will continue to improve our productivity to ensure sustainability for the group,” he adds.
Shares of Golden Palm Resources last closed at 32 cents on Feb 23.
