Global Palm reports 4Q18 net loss widens as palm oil prices fall

Indonesian rupiah notesIndonesian rupiah notes

Global Palm Resources reported on Friday its fourth quarter net loss widened to 7.7 billion Indonesian rupiah (S$739,958 or US$546,007), from a net loss of 3.9 billion rupiah in the year-earlier period, as crude palm oil (CPO) prices fell and on lower palm kernel prices and sales volume.

Revenue for the quarter ended 31 December fell 12 percent on-year to 93. billion rupiah, it said in a filing to SGX on Friday.

For the full year, it reported a net loss of 7.4 billion rupiah, swinging from a year-ago net profit of 42.7 billion rupiah, on revenue of 338.6 billion rupiah, down 26 percent on-year.

The gross profit margin for the full year fell to 9.1 percent from 24.2 percent in 2017, it said.

The average selling price for CPO fell to 6,609 rupiah a kilogram in 2018 from 8,009 rupiah a kilogram in 2017, Global Palm said. In the fourth quarter, the average CPO selling price was 5,368 rupiah a kilogram, down from 7,977 rupiah in the year-earlier quarter, it said.

In its outlook, Global Palm said it expected some near-term improvement.

“We expect to see prices trading above the low of 4th Quarter 2018 and within the current price range. We remain optimistic on the continuous demand for CPO due to the success implementation of the B20 biodiesel program,” Suparno Adijanto, executive chairman and CEO, said in the statement. “Meanwhile, we will continue to improve our productivity and manage our costs to ensure long-term sustainable growth for the group.”

Get the Shenton Wire morning briefing in your inbox