Global Palm Resources warns it expects 2Q19 net loss

A palm oil tree at a plantation in IndonesiaA palm oil tree at a plantation in Indonesia

Global Palm Resources warned Wednesday it expects to report a net loss for the second quarter, mainly on a drop in the sales volume and average selling price of crude palm oil and on a lower average selling price of palm kernel.

The warning was based on a preliminary review of the unaudited financial statements, which are still being finalized, Global Palm Resources said in a filing to SGX after the market close.

The results are expected to be released on or before 14 August, the filing said.

That followed peer Indofood Agri reporting Wednesday that its second quarter net loss widened to 216.54 billion Indonesian rupiah (S$21.19 million or US$15.44 million) from 68.60 billion rupiah in the year-ago period on lower selling prices for palm products.

Rotterdam CIF CPO prices fell 11 percent to an average US$533 a tonne in the first half from US$601 a tonne in 2018, Indofood Agri said.

“The ongoing U.S.-China trade tensions continue to affect the global trade flows and economic growth. These uncertain global developments have negatively impacted the prices of agricultural commodities,” Indofood Agri said.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.