Golden Agri-Resources Q2 results hurt by low plantation output (updated)

Golden Agri-Resources

12/08/2016 03:21

* Q2 net profit $40 mln vs $10 mln year ago 
    * Sees 2016 palm oil output down 15-20 pct 
 
 (Adds outlook from conference call) 
    By Aradhana Aravindan 
    SINGAPORE, Aug 12 (Reuters) - Singapore-listed palm oil 
company Golden Agri-Resources Ltd  GAGR.SI  said on Friday that 
its second-quarter operating performance had been hit by reduced 
output due to the El Nino weather pattern. 
    The world's second largest palm plantation company's 
earnings before interest, taxes, depreciation and amortization 
fell 41 percent in the second quarter from a year before to $86 
million. Palm product output in the second quarter fell 37 
percent to 455,000 tonnes. 
    But the company's net profit for the second quarter rose to 
$40 million, compared with $10 million a year ago, thanks to 
deferred tax income. The latest results included net tax-related 
benefits of $104 million from a revaluation of its plantation 
assets in Indonesia.  
    The world's second largest palm oil plantation company 
expects to see tax benefits in the same range in the second 
half. 
    While production is expected to improve in the second half 
of the year versus the first, the company will see its 2016 palm 
oil output falling 15-20 percent versus the previous year, 
Richard Fung, director of investor relations, said on a 
conference call. 
    He expects crude palm oil prices to stay range bound for the 
rest of the year. 
    "We expect better results due to larger harvest volumes in 
the second half of the year," Franky Widjaja, the company's 
chairman and chief executive officer, said in a statement. 
    The strongest El Nino in nearly 20 years, which damaged crop 
production in Asia and caused food shortages, ended earlier this 
year, according to the Australian Bureau of Meteorology (BOM). 
    "Positive developments include restocking activities in 
large consuming countries, potential La Niña conditions, and 
further implementation of Indonesia's biodiesel mandate," 
Widjaja said. 
    The company's stock was down 2.7 percent in morning trade, 
while the broader market  .STI  was 0.3 percent lower. 
 
 (Reporting by Aradhana Aravindan; Editing by Richard Pullin) 
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters 
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net)) 
 
Keywords: GOLDEN AGRI RESULTS/