Kencana Agri warned Friday it expects to report a second quarter net loss, mainly on low crude palm oil prices.
The palm oil producer said in a filing to SGX it would release more details when it announces its unaudited results “in due course.”
Kencana Agri’s warning came just days after peer Global Palm Resources said it expected 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.
In addition, peer Indofood Agri reported 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.
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