Golden Agri-Resources' profit hits $20.4m in Q2

It recovered from a YoY loss of $62.7m in 2016.

Golden Agri-Resources recovered from its $62.7m (US$46m) loss in 2016 with a profit of $20.4m (US$15m) in Q2.

Operating costs fell 8.2% YoY from $2.5b (US$1.8b) to $2.2b (US$1.6b). Revenue marginally rose by 0.8% from $2.3b (US$1.7b) to $2.5b (US$1.8b).

According to CIMB, Golden Agri's core net profit for H1 hit $80.4m (US$59m) and it expects H2 fresh fruit bunches (FFB) production to make up 55% of its whole-year output.

The group's pre-tax profit surged 214%, thanks to improved performances from its plantation and downstream divisions.

Reported net profit fell 56% because of the absence of deferred tax income of $178.5m (US$131m) last half-year.

Plantation EBITDA was impacted by lower output as well as ASPs, resulting in a 46.4% QoQ pre-tax profit fall.

The segment's EBITDA grew 64% YoY in H1, due to a higher CPO price and a 35% rise in nucleus estates’ FFB output.

However, its EBITDA fell 27% QoQ due to lower FFB output, which dipped by -5%.

Golden Agri's downstream division's EBITDA improved 5% in H1, whilst oilseeds and grains jumped 59% $6.1m (US$4.5m) on the back of higher crush margins.