Golden Agri 2Q profit more than doubles
Golden Agri-Resources Ltd., a unit of Indonesia's largest oil-palm grower, Sinar Mas Group, said second-quarter profit more than doubled as prices and production gained, Bloomberg reported.
Net income rose to $582 million in the three months to June 30, or 6 cents a share, compared with $228 million, or 2 cents a share, a year earlier, Singapore-based Golden Agri said in a statement to the stock exchange. Sales doubled to $817 million.
Golden Agri and rival growers such as IOI Corp. are taking advantage of higher demand from countries including China.
Palm oil used in cooking and as a fuel additive, averaged 3,513 ringgit ($1,054) a metric ton in the three months, 44% higher than the year-earlier quarter, according to Bloomberg data.
Profit "will likely be up and sales volume should also go up because of higher production and better weather," Ivy Ng, plantation analyst at CIMB Research Sdn., said before the results were announced.
Demand for palm oil will be "well-supported into the medium to long term by the burgeoning consumption of edible oils, particularly by the growing middle class in the major developing economies such as China, India and Pakistan," the company said.
"The strong global demand for palm oil, especially from developing countries, is expected to continue," Golden Agri CEO Franky Widjaja said in the statement.
Demand for biodiesel "acts as a floor" for palm oil prices provided that the price of crude oil remains high, he said.
Net income rose to $582 million in the three months to June 30, or 6 cents a share, compared with $228 million, or 2 cents a share, a year earlier, Singapore-based Golden Agri said in a statement to the stock exchange. Sales doubled to $817 million.
Golden Agri and rival growers such as IOI Corp. are taking advantage of higher demand from countries including China.
Palm oil used in cooking and as a fuel additive, averaged 3,513 ringgit ($1,054) a metric ton in the three months, 44% higher than the year-earlier quarter, according to Bloomberg data.
Profit "will likely be up and sales volume should also go up because of higher production and better weather," Ivy Ng, plantation analyst at CIMB Research Sdn., said before the results were announced.
Demand for palm oil will be "well-supported into the medium to long term by the burgeoning consumption of edible oils, particularly by the growing middle class in the major developing economies such as China, India and Pakistan," the company said.
"The strong global demand for palm oil, especially from developing countries, is expected to continue," Golden Agri CEO Franky Widjaja said in the statement.
Demand for biodiesel "acts as a floor" for palm oil prices provided that the price of crude oil remains high, he said.