Golden Agri-Resources' profit drops 80% to $59.5m in Q3

Strong production figures that failed to offset the deferred tax.

Golden Agri-Resources profit dropped steeply by 80% YoY to $59.5m (US$43.7m) in Q3 largely due to recognition of deferred income tax assets on revaluation of $329.5m (US$242m) last period.

Revenue also decreased 3% YoY to $2426.1m (US$1782m).

According to its financial statement, the company delivered strong production figures that failed to offset the deferred tax. Revenue contributions grew across most segments as revenue from plantation and palm oil mills increased by 28% YoY to $1703m (US$1251m) while palm and laurics business increased 11% to $6689.37m (US$4913.4m) in 9M2017.

Favorable weather conditions also boosted output growth.

The oilseeds segment was the exception to the segment growth as it decreased slightly by 3.8% YoY to $641. 52m (US$471.2M) as a result of lower volume.

“We expect the CPO prices to remain supported by global demand growth, including the tight stock position and the implementation of the biodiesel mandate in Indonesia,” Golden Agri-Resources said in its financial statement.