Asia Food & Properties to continue to sell assets
Asia Food & Properties to continue to sell assets
Dow Jones, Singapore
Asia Food & Properties Ltd., the debt-ridden Singapore-listed food and property arm of Indonesia's Sinar Mas group, said it will continue to sell assets to improve cash-flow after reporting a full-year loss amounting to S$309.4 million.
The company's unit, Golden Agri-Resources Ltd. also reported a loss of US$49.1 million on revenue of $310.4 million for the year ended Dec. 31, the two companies said Saturday.
Both companies are part of Indonesia's Sinar Mas Group owned by the Widjaja family, whose Asia Pulp & Paper Co. is under going the largest emerging-market debt workout in history.
The two companies added they will also continue to reschedule debt. Asia Food & Properties said by February 2002 it had rescheduled S$449 million in debt, or about 20 percent of its S$2.24 billion total debt that comprises short-term, long-term bank loans, bonds and trade financing facilities.
It rescheduled S$45.1 million in debt in February alone, it said.
Golden Agri, meanwhile has rescheduled $203 million of its $519.3 million debt, including $21.5 million in February.
"The group will continue its negotiations with creditors to reschedule its financial obligations," it said in a statement to the Singapore Exchange.
Both companies provided no further details on the debt rescheduling.
Asia Food & Properties said it has reduced its principal cash and time deposits with troubled BII Bank Ltd. of the Cook Islands by $51 million of the $297 million in cash and time deposits held as of March 31.
Golden Agri said it has reduced its principal cash and time deposits at BII Bank by $17 million and that it expects another $3 million to be repaid by the end of April 2002.
The company held US$226 million in cash and deposits with BII Bank as at 31 March 2001.
Lower Crude Oil Prices, Provision Causes Losses
Asia Food & Properties said full-year loss widened to S$309.4 million from S$217.5 million in 2000 while revenue rose 4.6 percent to S$1.47 billion.
Exceptional losses from agribusiness, food and property divisions rose to S$227.6 million from S$78.4 million in 2000.
AFP said it has provided $30.6 million in provisions for the value of two foreign exchange contracts by its 51 percent owned, Jakarta Stock Exchange-listed PT Sinar Mas Agro Resources & Technology Tbk, or Smart.
Smart has appointed an independent financial adviser to "value its two forward foreign exchange contracts."
"The valuation is currently under way and the IFA indicated a fair value ranging between $30 million and $60 million. Using the median of $45 million, SMART has therefore made a provision of $30.6 million," AFP said in a statement.
AFP also made provisions of S$21.6 million for the impairment in value of tea plantations and oil palm plantations in Irian Jaya, Indonesia.
AFP also had provisions of S$53.9 million for lower value of its investments in the instant noodles business and another S$88.5 million in provisions for its property business.
Golden Agri-Resources, meanwhile, reported a loss of US$49.1 million from a profit of $8.55 million in 2000. Revenue fell 20% to $310.4 million.
Golden Agri said earnings fell because of lower crude palm oil prices, provisions and higher interest on debt, the company said.
"CPO prices remained volatile throughout the year," it said, adding that the average international CPO price for 2001 was $283 per ton compared with $311 per ton the previous year.
Golden Agri's interest expense rose by 22.5 percent to $46 million from $37.6 million in 2000 because of new loans at the end of 2000 and during 2001.