Golden Agri-Resources Q1 core profit surges, sees El Nino hitting output

Golden Agri-Resources

13/05/2016 11:08

SINGAPORE, May 13 (Reuters) - Singapore-listed palm oil 
company Golden Agri-Resources Ltd  GAGR.SI  posted a 65 percent 
rise in quarterly core net profit, helped by strong results at 
its palm and lauric business, but warned the El Niño weather 
pattern would hurt production. 
    Core net profit, which excludes the impact of changes in the 
fair value of biological assets and foreign exchange, was $40.4 
million in the first quarter ended March, compared with $24.4 
million a year earlier.  
    Golden Agri, one of the world's largest palm oil planters, 
posted a net profit attributable to owners of $94 million versus 
a loss in the year-ago period. 
    "The group's production will be negatively affected by the 
El Nino weather condition, but the impact may be mitigated by 
higher CPO (crude palm oil) prices, resulting from tighter 
supply coupled with increased domestic demand following 
Indonesia's biodiesel programme," the company said in a 
statement on Friday. 
    Earlier in the day, Singapore-based trader Olam 
International  OLAM.SI  said it expected Southeast Asia's palm 
oil output to drop in 2016 due to dry conditions from El Nino.  
The weather phenomenon typically brings dry weather to swathes 
of Asia.  urn:newsml:reuters.com:*:nL3N18A257 
 
 (Reporting By Aradhana Aravindan; Editing by Subhranshu Sahu) 
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters 
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net)) 
 
Keywords: GOLDEN AGRI RESULTS/