Golden Agri-Resources has reported earnings of U$153 million for the six months ended June 30, a swing from a net loss of US$157 million in the year earlier.
Revenue in the same period was up 31% y-o-y to US$4.45 billion, thanks to higher palm oil prices that increased by 77%.
See also: Golden Agri-Resources enhances sugar trading business with new Brazilian subsidiary
The company plans to pay an interim dividend of 0.528 cents per share. The company didn’t pay a dividend this time last year.
Franky O. Widjaja, chairman and CEO of the company, notes that global vegetable oil supply has been very tight because of “weather uncertainties” and also labour shortage in major producing countries such as Malaysia.
“These conditions are expected to remain until late 2021,” he says.
On the other hand, global demand has been “very encouraging” and exports will be in line with improving market conditions in major consuming countries.
“We remain positive while staying prudent by closely monitoring industry supply and demand dynamics to be able to benefit from any prospective developments,” he adds.
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As at 9.50am, GAR shares were up 0.5 cent to 24 cents.
