SINGAPORE (May 11): Halcyon Agri, the natural rubber supply chain manager, returned to profitability in 1Q with earnings of US$11 million ($15.5 million) compared to a loss of $6.6 million a year ago.
Earnings per share was 0.69 US cents, up from the adjusted loss per share “LPS) of 0.42 US cents.
The 1Q results revealed the first consolidated set of results from the expanded Halcyon Agri after a three-stage merger, integrating the natural rubber processing assets of Sinochem International Corporation Co. and GMG Global in 2016.
Quarterly Rrvenue tripled to US$558.3 million while gross profit surged to US$44 million, mainly due to improved processing segment margins in 1Q17.
Overall production capacity grew with the addition of 19 processing factories, boosting total sales volumes to 286,134 tonnes in 1Q17, up from 150,203 tonnes in 1Q16.
Additional sales contributions were derived from the newly acquired assets as well as increased volume from existing operations.
Post-merger, Halcyon Agri’s geographical reach now covers ownership of operating factories in key rubber producing areas of West Africa, Indonesia, Malaysia, Thailand and China.
Halcyon Agri Executive Director and CEO Robert Meyer says: “We are pleased to announce a strong set of results against a backdrop of volatile market conditions. The integration of our natural rubber assets is going smoothly. We are beginning to see a favourable impact on our Group performance, putting us in a relatively good stead for the year ahead. Halcyon Agri will continue to reinvent the rubber business, as we move towards a sustainable, customer-centric business model that will deliver consistent value to our stakeholders.”
Shares of Halcyon closed 1 cent lower at 60 cents.
