Golden Agri-Resources has reported earnings of US$41 million for 1QFY21 ended March, sharp swing from losses of US$95 million incurred in the year earlier period.
Revenue in the same period was US$2 billion, up 24% y-o-y from US$1.66 billion, thanks to higher crude palm oil prices, which appreciated by 57% over same period last year to US$1,057 per tonne.
Golden Agri-Resources benefitted from better downstream business too.
Given dry weather conditions in South America, global supply has been constrained and the company expects this situation to persist till end of this year.
On the other hand, it is optimistic that demand for vegetable oils will remain strong both in the food and energy sectors.
“We remain vigilant and continue to monitor the development of the COVID-19 pandemic in major consuming countries,” the company says.
Golden Agri-Resources closed May 12 at 28 cents, up 5.77%.
