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First Resource 1.70 now.
Last:0.255 
+0.01
in 25c commodity boom town charlie
gd luck dyodd
+0.01in 25c commodity boom town charlie
gd luck dyodd
0.25 now.
This palm oil laggard starting to move.
https://www.spglobal.com/platts/en/market-insights/latest-news/agriculture/093021-palm-oil-futures-hit-all-time-high-as-china-rushes-to-fill-soy-oil-shortage
Palm oil futures prices set a new all-time high in Malaysia on Sept. 30 as news of supply concerns and higher exports coincided with Chinese buyers rushing to book palm oil shipments to make up for a potential shortage in soybean oil ahead of China' s week-long Golden Week national holiday.
In Malaysia, the benchmark December palm oil futures contract on the keenly-watched Bursa Malaysia Derivatives index rose 120 points during trading to a record high of MR4,579/mt ($1,093.75/mt) on Sept. 30 as traders reported " heavy" buying from China.
Palm oil futures prices set a new all-time high in Malaysia on Sept. 30 as news of supply concerns and higher exports coincided with Chinese buyers rushing to book palm oil shipments to make up for a potential shortage in soybean oil ahead of China' s week-long Golden Week national holiday.
In Malaysia, the benchmark December palm oil futures contract on the keenly-watched Bursa Malaysia Derivatives index rose 120 points during trading to a record high of MR4,579/mt ($1,093.75/mt) on Sept. 30 as traders reported " heavy" buying from China.
with high cpo price, golden Agri likely to show good result in 3q21 which would a boost to the share price.
Golden Agri-Resources' industry-leading ESG score hides razed forests in Africa
In the impoverished West African country of Liberia, a unit of the world' s second-largest palm oil company has admitted to destroying forests and violating the rights of indigenous people. Yet its parent is among the industry' s leaders in investor ratings for environmental and social policies.Golden Agri Resources Ltd. acknowledged in February that its Golden Veroleum Liberia (GVL) unit hadn' t done enough to compensate local residents for business practices that included razing part of one of the planet' s richest biodiversity regions. Among the company' s shareholders is BlackRock Inc., the world' s largest asset manager, whose chairman Larry Fink has made combatting climate change a focus for the US$9.5 trillion ($12.79 trillion) of assets his firm manages.
Part of Golden Agri' s attraction for investors is that it tops a global list of more than two dozen agricultural producers and wholesalers for its environmental efforts, and ranks fourth on social-related issues, according to data compiled by Bloomberg. And while the industry' s performance as a whole isn' t good - Golden Agri rose to the top of the environment chart with a score of only 4 out of 10 - it makes the company the best of the pack for investors that need to keep a diverse portfolio.
" This is an example of a common problem with ESG ratings," says Andrew King, professor of management at Boston University' s Questrom School of Business, who focuses on ESG measurement and corporate sustainability. " Their inaccuracy can protect bad actors by impeding pressure for real improvement."
It also shows the difficulty investors and activists face in tracking and bringing to book wayward agricultural enterprises that often operate through units or joint ventures in remote, poor areas of the world.
The controversy surrounding Golden Veroleum surfaced three years ago when Friends of the Earth and the Sustainable Development Institute Liberia filed a complaint with the High Carbon Stock Approach, a body set up a decade ago by Golden Agri and environmental groups to develop a scientific way of evaluating tropical forests to curb deforestation and protect the rights of local people. HCSA' s members now include some of the world' s biggest food producers such as Unilever Plc and Cargill Inc.
Activists for the environmental groups had visited the area around Wiah' s Town, a ramshackle group of some 100 tin-roofed buildings strung along a red-dirt road an hour' s drive from the coast. Inhabitants say GVL promised to provide jobs and amenities such as piped water, but instead the company cut down the forest, deprived farmers of their land and polluted the water supply.
" GVL cleared the land of the Lower Kulu people called Blogbo land without our consent," says Russels Kumon, 67, a retired teacher who returned to Wiah' s Town a few years after his country' s second civil war ended in 2003. " The whole place has been enclaved. We are just in the enclaved area, making farming and any other things difficult for us. The land has been destroyed."
Looking up at the palm oil mill, belching out smoke, he says the factory was built on a sacred hill, Tarhuowon, that members of the community used to climb to rectify ailments. GVL said there was no indication from local representatives that the hill was sacred when it erected the plant.
Few of the expected jobs materialized, Kumon says. Several of those who are employed in the mill and plantation complained to Bloomberg of low wages and arduous working conditions, with some saying they work seven days a week for US$150 a month.
Further down the road, in the village of Butawu, 48-year-old electrician Othello Jartoe says the palm oil grower constructed just one hand pump, to be shared by more than 100 people, while he and others were laid off by the company after a year. " The minority is employed and the majority is unemployed," he says.
The High Carbon Stock Approach has a system to investigate such complaints and in February it concluded that GVL failed to conduct a proper consent process with local communities before clearing land and setting up its operation, and hadn' t done enough to remediate the misconduct and compensate residents. HCSA said the palm oil company must halt land development until conflicts with communities are resolved, provide new biodiverse forest and adopt policies to prevent further rights violations.
But restoring rainforest biodiversity is difficult if not impossible. GVL operates in the Upper Guinean forests, which span six West African nations, from Guinea in the west to Togo in the east. Only about 20% of the original forest remains - about half of it in Liberia - and it is considered a vital carbon sink and a world biodiversity " hotspot," with an estimated 390 terrestrial mammal species, or more than a quarter of all those in Africa.
" The region is a mosaic of forests interspersed with villages, and as such is more vulnerable to deforestation than other regions such as the Congo," says Wannes Hubau, associate professor of tropical forest ecology at Ghent University in Belgium. " Its accessibility is hastening the switch from being a carbon sink to releasing carbon dioxide."
GVL said in a Sept 7 response to queries from Bloomberg that it had made " mistakes" and had stopped clearing land in February, though it denied many of the allegations leveled by local communities. Singapore-listed Golden Agri, part of the Sinar Mas Group of the billionaire Indonesian Widjaja family, said in a statement that GVL has suspended further land development and implemented some other recommended measures, including drawing up a sustainability plan. Liberian Information Minister Ledgerhood Rennie referred queries to the company and didn' t comment further.
Since the HCSA ruling, Friends of the Earth said that local communities hadn' t been consulted about the sustainability plan. GVL said it has consulted communities, investigated complaints when they were made, followed the law with regard to land acquisition and met the water quality standards of the nation' s regulator.
For investors, the resolution of cases like the one in Liberia and better oversight of operations, especially in developing countries, is critical if ESG investing is to be meaningful.
A group of more than 60 indigenous leaders and activists from six continents wrote to BlackRock executives in March, saying the asset manager can' t turn a blind eye to the destruction of the Upper Guinean forests and similar ecosystems in South America and Southeast Asia. " Climate change isn' t simply a risk to be calculated in terms of profit margins," they wrote. " It is a constant stream of risks to our peoples and our planet, which we face every day."
BlackRock holds only about 0.7% of Golden Agri and is one of several dozen banks, investment firms and pension funds that have small stakes in the grower. Officials at Vanguard Group, which held about a 1.3% stake in Golden Agri as recently as late August, declined to comment about its investment. Blackrock said in March it will press companies on their environmental and human rights policies, and those that fail to properly oversee the use of natural resources " may face negative consequences arising from regulatory, reputational or operational risks."
BlackRock, without disclosing the company' s name, said in a quarterly stewardship report in May that it had engaged with a Singapore-listed palm oil producer and its unit in Africa to discuss environmental and social controversies related to that business. It referenced HCSA' s February report and said it was told about remediation steps the unnamed company had taken and that it had commissioned a third party to investigate the extent of deforestation.
The palm oil company told BlackRock that HSCA is still determining the amount of compensation for the cleared forests and acknowledged the lack of progress in providing remediation to the communities. The pandemic had delayed the process and the review had resumed in March, the company told BlackRock.
" We expect the company to continue paying attention to the environmental and social controversies signalled in HSCA' s report and work towards resolving them," BlackRock said in its report. A BlackRock spokesman declined to name the company.
At the heart of the problem for investors are the ESG scores, which are largely based on self-reported and unaudited information, lack consistency between ratings providers, and emphasize corporate policies and processes rather than impacts.
Even within those limits, many of the world' s top agricultural producers and wholesalers score poorly. Golden Agri has spent years trying to build an image as a producer of sustainable palm oil and topped the environmental list in 2019 after its rating rose to 4 from 0.9 in 2015, data compiled by Bloomberg show.
The poor showing of the plantation owners and food companies shows how much more needs to be done to protect the rights of individuals and preserve some of the earth' s most important carbon stores.
About 20% of Liberia' s tree cover has vanished during the past two decades, releasing about 1 gigatonne of carbon dioxide into the atmosphere during that period, according to Global Forest Watch. That' s the equivalent of greenhouse gas emissions from 217 million passenger cars driven in one year. The World Bank forecast in July that the global economy risks losing as much US$2.7 trillion a year by 2030 if countries continue to destroy biodiversity.
" If you promised to do something and you did it only halfway, to me you have done nothing," says Jartoe in Butawu village.
Golden Agri sees itself in a good place to weather volatile palm oil prices
Company' s low production cost provides " significant protection" against lower prices: CFO
PALM oil producers have enjoyed a lift in revenues and earnings so far this year, thanks to higher crude palm oil (CPO) prices. A correction in the commodity' s prices could come as soon as the end of the year, but Golden Agri-Resources is confident that its low production costs and its exposure to both downstream and upstream segments put it in a good place.
CPO futures are up about 52 per cent year to date, and 65.8 per cent over the past one year. The higher prices helped push Golden Agri into the black for the first half of the year ended June, with a net profit of US$153.2 million versus a net loss of US$156.9 million in the year-ago period.
Revenue for the period rose 31.4 per cent to US$4.5 billion, from US$3.4 billion. Ebitda (earnings before interest, taxes, depreciation and amortisation) for the upstream segment rose to US$365 million from US$131.7 million in the year-ago period, while Ebitda for the downstream segment grew to US$158.4 million from US$58.2 million.
Its shares have similarly rebounded, rising 44.7 per cent year to date to close at S$0.23 on Monday.
In an interview with The Business Times, chief financial officer Rafael Concepcion said CPO prices are likely to remain volatile.
But he believed the company' s low production cost - which he claimed is among the lowest in the industry - would provide " significant protection" against lower prices.
Golden Agri is also keeping close watch over its labour costs, which Mr Rafael said is one of the " major costs" in palm oil plantations.
The company has been increasing its long-term productivity through the use of higher yielding seeds. The group has also been implementing mechanisation, automation and digitalisation efforts that reduce the need for manual labour on its plantations.
" The main objective is to increase labour productivity and consistency in operations," said Mr Rafael.
Golden Agri is among the largest oil palm planters in Indonesia, with a total planted area of 536,900 hectares.
It also owns palm oil mills and it processes and sells a variety of palm and oilseeds products. Besides palm, the company also has a presence in other edible oils such as soybean and sunflower oil, as well as other commodities such as sugar.
The diversified nature of its business helps shield Golden Agri from sharp fluctuations in oil palm prices, added Mr Rafael.
Mr Rafael also said logistical challenges that had initially " severely disrupted the industry' s value chain" have progressively eased.
Although there are still bottlenecks at ports, he said freight costs for the company in H1 2021 were manageable.
Golden Agri' s 56.3 per cent-owned subsidiary Gemini Edibles & Fats India is heading for a dual listing on both the Bombay Stock Exchange and National Stock Exchange of India.
A successful listing would raise some 7.5 billion rupees or about US$100 million for Golden Agri, which will be used primarily to improve the company' s liquidity position and balance sheet.
" (The listing) will unlock the shareholders' value of our India subsidiary and will increase access to capital-raising opportunities for our India subsidiary," said Mr Rafael, adding that the company does not have plans to list its subsidiaries in other countries at the moment.
CGS-CIMB upgrades Golden Agri to ' hold' on CPO price strength
CGS-CIMB has upgraded its call on Golden Agri-Resources Golden Agri-Res: E5H +2.08% to " hold" from " reduce" on expectations that the company' s share price will be supported by firm crude palm oil (CPO) prices as well as its proposed listing of its 56.3 per cent-owned subsidiary, Gemini Edibles & Fats India (GEF).
The research house maintains its S$0.25 price target which is still based on a 20 per cent discount to its estimated sum-of-parts value, despite raising earnings per share forecasts to reflect higher CPO prices and downstream profit margins.
In a report dated Monday, CGS-CIMB analysts highlighted Golden Agri' s plantation division as the key earnings driver for H1 FY2021 as the group' s fresh fruit bunches (FFB) output grew 24 per cent year-on-year.
" The key surprise in H1 FY2021 was stronger-than-expected fresh fruit bunches (FFB) output, due partly to the acquisition of new estates and improved yields from its estates that were hit by drought last year," they noted.
" Its downstream business also did well&hellip We gathered that this was due to the rising CPO price as well as a favourable export levy structure. Golden Agri explained that the lower sales volumes were due to timing of delivery, resulting in higher inventory at the end of June 2021," added the analysts.
RHB Research remains " neutral" on the stock with a higher price target of S$0.24 compared to S$0.22 previously after raising its forecasts by 2 to 3 per cent for FY2022 to FY2033, respectively.
In a separate report issued Monday, the research team said it believes Golden Agri' s valuations are presently fair as it expects environmental, social and governance (ESG) issues to dampen industry valuations for the time being.
The team also thinks Golden Agri' s close correlation with, and high sensitivity to, CPO prices are " likely to hamper its share price performance in the medium term" .
While RHB estimates that the group' s listing of GEF in India could add some S$0.04 to S$0.06 per share to the Golden Agri' s fair value, it highlighted that the company may no longer be able to consolidate GEF' s earnings after it goes public.
" We note that contributions from GEF have been on a rising trend, recording US$60 million net profit in 2020 from USS36 million in 2019," said the team.
Palm oil rise on tight supply worries, subdued August exports weigh
Malaysian palm oil futures rose on Tuesday, hovering near record highs hit last week on global supply worries, but a sharp decline in August exports so far capped gains.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 63 ringgit, or 1.42%, to 4,510 ringgit ($1,064.56) a tonne by the midday break.
The contract opened higher on short covering due to persistent talks of production losses in both Malaysia and Indonesia, and expectations of lower palm oil carryover stocks for the new season, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Anticipation of Indonesia' s crude palm oil (CPO) export duties for September rising higher to $166 per tonne, from $93 per tonne in August also supported prices as it would benefit Malaysia' s exports, Bagani said.
Malaysia' s palm oil exports during Aug. 1-15 fell between 15% and 24% from the same period in July, cargo surveyors said on Monday.
" Oil World is expecting crude palm oil prices to weaken by end-Dec 2021 and will continue to see more weakness in 1H22 with the assumption of no weather disruptions," UOB KayHian said in a note.
Oil World executive director Thomas Mielke forecast Indonesia' s free on board (FOB) CPO price to fall to $1,000 a tonne tonne by end-Dec 21, and range between $800-850 a tonne during the first half of next year, UOB said.
This is due to expectations of stronger global edible oil supplies in 2021/22 after record high prices last year boosted plantings and demand rationing due to high prices, UOB said.
CGS-CIMB upgrades Golden Agri to ' hold' on CPO price strength
CGS-CIMB has upgraded its call on Golden Agri-Resources Golden Agri-Res: E5H 0% to " hold" from " reduce" on expectations that the company' s share price will be supported by firm crude palm oil (CPO) prices as well as its proposed listing of its 56.3 per cent-owned subsidiary, Gemini Edibles & Fats India (GEF).
The research house maintains its S$0.25 price target which is still based on a 20 per cent discount to its estimated sum-of-parts value, despite raising earnings per share forecasts to reflect higher CPO prices and downstream profit margins.
In a report dated Monday, CGS-CIMB analysts highlighted Golden Agri' s plantation division as the key earnings driver for H1 FY2021 as the group' s fresh fruit bunches (FFB) output grew 24 per cent year-on-year.
" The key surprise in H1 FY2021 was stronger-than-expected fresh fruit bunches (FFB) output, due partly to the acquisition of new estates and improved yields from its estates that were hit by drought last year," they noted.
" Its downstream business also did well&hellip We gathered that this was due to the rising CPO price as well as a favourable export levy structure. Golden Agri explained that the lower sales volumes were due to timing of delivery, resulting in higher inventory at the end of June 2021," added the analysts.
RHB Research remains " neutral" on the stock with a higher price target of S$0.24 compared to S$0.22 previously after raising its forecasts by 2 to 3 per cent for FY2022 to FY2033, respectively.
In a separate report issued Monday, the research team said it believes Golden Agri' s valuations are presently fair as it expects environmental, social and governance (ESG) issues to dampen industry valuations for the time being.
The team also thinks Golden Agri' s close correlation with, and high sensitivity to, CPO prices are " likely to hamper its share price performance in the medium term" .
While RHB estimates that the group' s listing of GEF in India could add some S$0.04 to S$0.06 per share to the Golden Agri' s fair value, it highlighted that the company may no longer be able to consolidate GEF' s earnings after it goes public.
" We note that contributions from GEF have been on a rising trend, recording US$60 million net profit in 2020 from USS36 million in 2019," said the team.
Golden Agri-Resources' India IPO has possible growth potential
SHARES of Golden Agri-Resources have not enjoyed much of a boost since the palm oil supplier announced plans to list its Indian subsidiary on both the Bombay Stock Exchange and National Stock Exchange of India.
The company had announced on the morning of Aug 8, a Sunday, that it could get 7.5 billion rupees or about US$100 million (S$136.9 million) from the initial public offering (IPO) of its 56.3-per-cent-owned subsidiary Gemini Edibles & Fats India (GEF).
GEF, which is incorporated in India, is engaged in the manufacturing, distribution and branding of edible oils and specialty fats. Its product portfolio includes sunflower oil, rice bran oil, as well as specialty fats for biscuits and confectionery.
Golden Agri shares had closed on Friday, Aug 6, at 24.5 Singapore cents. On Tuesday, Aug 10, when trading resumed, the counter rose as high as 25 cents before ending the day lower at 24 cents. Since then, Golden Agri shares have fluctuated within the range of 23 cents to 25 cents. They closed last week on Friday, Aug 13, at 24 cents.
The market reaction to Golden Agri' s spin-off plans stands in contrast to the positive response that followed a similar announcement from peer Wilmar International late on the night of Aug 2. Wilmar' s shares had finished that day at S$4.30. The following day they hit an intraday high of S$4.46 before settling at S$4.42. Wilmar closed on Friday, Aug 13, at S$4.44.
Those differing market reactions are, to some extent, warranted. RHB has estimated that Wilmar' s listing of its unit Adani Wilmar could boost Wilmar' s share price by about S$0.20 per share, assuming Adani Wilmar trades on par with its fast-moving consumer goods (FMCG) peers in India.
RHB' s estimate for the impact on Golden Agri' s share price is a much more moderate 4 to 6 cents per share.
Also, some analysts have suggested Wilmar could reward investors with a larger dividend upon a successful listing of Adani Wilmar.
Although RHB thinks a dividend payout is also a possibility for Golden Agri, the brokerage said the money raised from the GEF IPO might also be used to pare debt. On a recent call to discuss Golden Agri' s financial results for the first half of the year, director of investor relations Richard Fung said that the money collected from the IPO will be used for general operating expenses. Nevertheless, analysts said Golden Agri shareholders can look forward to growth potential for GEF in India.
The country is one of the largest importers and consumers of palm oil, and shares of both GEF and Adani Wilmar could perform well.
" Emerging markets have traditionally been a source of higher returns for investors. With its young population, India is also a key consumer market," said Justin Tang, head of Asia research at United First Partners. Mr Tang is expecting the Indian economy to benefit from a return to normalcy and pent-up demand as it recovers from the worst of the pandemic.
RHB, meanwhile, noted that consumption in India will benefit from factors such as the population growth, rising affluence and consumerism.
GEF' s draft prospectus shows the company reported revenue of 77.7 billion rupees for the financial year ended March 31, up 19.5 per cent from 65 billion rupees in the prior year. Net profit was 5.7 billion rupees, up from 1.9 billion rupees.
Golden Agri posted net profit of US$153.2 million for H1 FY2020 ended June, reversing from a net loss of US$156.9 million in the year-earlier period. Revenue for the period rose 31.4 per cent to US$4.5 billion, from US$3.4 billion.
The company declared an interim dividend of 0.528 cent per share, versus no dividend in the year-earlier period.
Higher palm oil demand, tight supply boost Golden Agri' s optimism for rest of the year
Pandemic recovery boosts demand but supply is limited due to weather conditions, says director
PALM oil plantation owner Golden Agri-Resources is positive on the outlook for the rest of the year amid favourable demand and supply dynamics.
In a call to discuss the company' s financial results for the first half of the year ended June, the group' s director for investor relations Richard Fung said that on one hand, demand for crude palm oil (CPO) has been stoked by countries recovering from the brunt of the Covid-19 pandemic and the resumption of economic activity. On the other hand, supply has been kept tight due to dry weather conditions in producing countries such as Indonesia and Malaysia.
This in turn boosted benchmark palm oil prices. The international CPO (FOB Belawan) price during H1 was US$1,088 per tonne, some 77 per cent higher than the price in the corresponding period last year.
Mr Fung remains optimistic about the outlook of the palm oil industry: " The long-term outlook of the industry continues to be positive given palm oil' s competitive advantages in serving a growing population as well as the increasing incomes per capita (segments)," he said.
For the first half of the year ended June, Golden Agri reported net profit of US$153.2 million, reversing from a net loss of US$156.9 million in the year-ago period. Revenue for the period rose 31.4 per cent to US$4.5 billion from US$3.4 billion due primarily to a recovery in palm product output and sustained strong crude palm oil (CPO) prices during the year.
Golden Agri declared an interim dividend of 0.528 Singapore cent per share.
Higher CPO prices also lifted the earnings of both Golden Agri' s upstream and downstream segments.
Ebitda (earnings before interest, taxes, depreciation and amortisation) for Golden Agri' s upstream segment - which consists of plantations and palm oil mills - grew to US$365 million from US$131.7 million in the year-ago period.
Production of fresh fruit bunches rose 27 per cent year on year to 5.2 million tonnes, from 4.1 million tonnes in view of the favourable weather conditions.
But Golden Agri took a hit from Indonesia' s new export tax and levy scheme that was implemented at the end of 2020. The net CPO price for H1 after this levy came in stood at US$722 per tonne, up 29.2 per cent from US$559 in the year-ago period.
Looking ahead, Mr Fung expects the full-year' s production figures to see a " healthy growth" of about 12 per cent from last year. The production yield is likely to taper off slightly in H2. Golden Agri' s production growth in the second quarter was strong, and the group also booked high production growth in the fourth quarter last year.
Meanwhile the downstream segment, which constitutes all processing and merchandising of palm and oilseeds products, oleochemicals and other vegetable oils, reported Ebitda of US$158.4 million, up from US$58.2 million last year. The increase was attributed primarily to higher average selling prices.
In order to capitalise on higher CPO prices, Mr Fung said Golden Agri will focus on replanting and technological innovation to ensure continued long-term production growth. The use of next-generation higher-yielding seeds and mechanisation techniques on plantations will help boost yields, he added.
For FY2021, Golden Agri has earmarked US$150 million for capital expenditure. This amount is mainly for replanting, expansion of biodiesel capacity, and the enhancement of capabilities to produce higher value products. Golden Agri has spent US$66 million of this so far this year, and expects to stay " within budget" in H2.
The company is also expecting to pocket 7.5 billion rupees or about US$100 million from the initial public offering of its 56.3 per cent-owned subsidiary Gemini Edibles & Fats India in a dual listing on both the Bombay Stock Exchange and National Stock Exchange of India.
These proceeds will be used primarily to improve Golden Agri' s liquidity position and its balance sheet, said Mr Fung. No mergers and acquisitions are in the pipelines for now, he added.
I understand the dividends should be US$0.00528 cents, not Singapore cents but it' s the price that I am going after..
Half cent interim, ok lar... no fish, prawn also can. Just keep an eye for the price.
Golden Agri-Resources performance continues to strengthen in first half 2021
> Net profit for the first half 2021 increased to US$153 million whilst EBITDA1 more than doubled to US$523 million
> First half 2021 palm product output recovered strongly by 31 percent to 1.60 million tonnes, supported by favourable weather conditions
> The Board declares interim dividend of 0.528 Singapore cents per share amidst robust performance and outlook
Golden Agri-Resources swings to black in H1 2021 on palm product output recovery
Palm oil plantation company Golden Agri-Resources Golden Agri-Res: E5H 0% reversed into the black in the first half of 2021 from a year ago, thanks to boosts in revenue from its plantations and palm oil mills segment, the company said on Friday.Net profit for the six months ended June 30 stood at US$153 million, reversing from a net loss of US$157 million posted in the same period a year ago.
The results translate to earnings per share of 1.21 US cents, against loss per share of 1.23 US cents.
Revenue was up 31.4 per cent to US$4.45 billion, in line with increasing international crude palm oil prices globally. Consequently, earnings before interest, taxes, depreciation and amortisation surged 176.2 per cent to US$522.7 million in H1 2021, compared with the year-ago period.
The company explained also that its revenue from its plantations and palm oil mills segment increased 66.9 per cent to US$1.04 billion in H1 2021, mainly driven by higher crude palm oil prices - the average international crude palm oil price per tonne in the period of assessment was 76.6 per cent higher at US$1,088 per tonne versus US$616 per tonne in the year-ago period.
This figure didn' t surge as much in Indonesia, however, which adopted an export tax and levy scheme at end-2020, with the net crude palm oil price going up just 29.2 per cent to US$722 per tonne versus US$559 in the year-ago period.
The board has proposed an interim dividend of 0.528 US cent per share, payable on Nov 30, 2021.
Shares of Golden Agri-Resources closed flat at 23.5 Singapore cents on Thursday.
Golden Agri-Resources performance continues to strengthen in first half 2021
Net profit for the first half 2021 increased to US$153 million whilst EBITDA1 more than doubled to US$523 million
First half 2021 palm product output recovered strongly by 31 percent to 1.60 million tonnes, supported by favourable weather conditions
The Board declares interim dividend of 0.528 Singapore cents per share amidst robust performance and outlook
https://links.sgx.com/1.0.0/corporate-announcements/PXW13MS25P1YGVVL/678671_GAR30-13-08-2021-Media%20Release.pdf
Net profit for the first half 2021 increased to US$153 million whilst EBITDA1 more than doubled to US$523 million
First half 2021 palm product output recovered strongly by 31 percent to 1.60 million tonnes, supported by favourable weather conditions
The Board declares interim dividend of 0.528 Singapore cents per share amidst robust performance and outlook
https://links.sgx.com/1.0.0/corporate-announcements/PXW13MS25P1YGVVL/678671_GAR30-13-08-2021-Media%20Release.pdf
Whatever you say about the palm oil prices, Golden Palm is poised to move again....
expect to test its recent high of 0.295,, and smashed through the 30 barrier.
expect to test its recent high of 0.295,, and smashed through the 30 barrier.
Golden Agri-Resources moots share sale worth US$100 mil via India subsidiary' s IPO
Leading palm oil company Golden Agri-Resources plans to sell shares worth some US$100 million ($135 million) in the IPO of a subsidiary in India.In an Aug 8 announcement, GAR said Gemini Edibles & Fats, its 56.27%-held indirect subsidiary, has on Aug 7 filed a draft prospectus with the National Stock Exchange of India for a proposed listing on the Bombay Stock Exchange.
GEF, described by GAR as one of the leading and fastest-growing edible oils and fats companies in India, plans raise some 25 billion rupees worth of shares, or around US$333 million, via the proposed IPO.
GAR, which plans to sell its portion of shares worth some 7 billion rupees, or US$100 million, will remain as the single largest shareholder of GEF upon completion of the proposed IPO, and " for the foreseeable future" .
GAR is one of the companies controlled by Indonesia' s Widjaja family, whose interests include coal mines, real estate and many other businesses.
Plans for GEF' s IPO were first indicated back in May this year.
GAR gained control of GEF back in 2014 after paying some US$17.88 million for a 50.01% stake to its then controlling shareholder Ruchi Soya Industries.
" Details of the terms of the proposed IPO are still being finalized and will be subject to, among other things, market conditions, the relevant regulatory and other approvals being obtained, and the execution of definitive agreements by the relevant parties," says GAR.
Another Singapore-listed palm oil company, Wilmar International, is similarly planning a listing of a linked company in India.
These capital market moves come amid record palm oil prices.
On Aug 2, Wilmar announced that Adani Wilmar, its joint venture in India, is planning an IPO worth up to 45 billion rupees, or some $820 million.
Adani Wilmar is a 50-50 joint venture between Wilmar and Indian conglomerate Adani Group.
Separately, late last year, Wilmar spun off its China-based subsidiary, Yihai Kerry Arawana Holdings, for its own listing in China. Wilmar retains ownership over around 90% of the shares.
Based on Yihai Kerry Arawana' s Aug 7 closing price, its market is RMB385.4 billion, or around $80.5 billion. In contrast, Wilmar' s own market cap, based on Aug 7' s closing price of $4.45, is $28.5 billion.