Golden Agri-Resources E5H has reported earnings of US$68 million ($92.5 million) for its 3QFY2023 ended Sept 30, down 25% y-o-y.
Revenue in the same period, however, was up 5% to US$2.45 billion, as gross profit improved 25% to US$494 million in 3QFY2024.
According to the company, increasing downstream sales volume helped compensate for the decline in crude palm oil (CPO) prices that impacted its plantation business.
The company says it remains positive about the palm oil industry’s long-term outlook. “With the growing concern about adverse weather conditions, global vegetable oil supplies are expected to remain tight.”
In terms of short-term development, drought conditions across producing regions in Southeast Asia and South America point to the possibility of a slowdown in palm oil and soybean oil production. The upcoming festive season and strong biodiesel demand are expected to support the consumption of vegetable oils.
However, lingering geopolitical tensions and unstable global economic conditions will continue to add to market uncertainty. “We remain cautious and closely monitor the supply-demand dynamics of the industry," the company says.
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Golden Agri-Resources shares closed 0.5 cents or 1.89% up at 27 cents on Nov 14.
