JAKARTA, SAWIT INDONESIA – In the first half of 2017 Golden Agri-Resources Ltd (GAR) and its subsidiaries achieved revenue of US$3.8 billion and a 44% increase in EBITDA to US$328 million. The strong performance was supported by the appreciation of crude palm oil (CPO) market prices coupled with the recovery in palm production as the impact of the 2015 El Niño subsided.

Franky Widjaja, GAR Chairman and Chief Executive Office, said “We are pleased to see GAR’s robust performance across all segments in the first six months of 2017. CPO market prices have remained stable despite the increasing production output of the industry. GAR continues to have a positive outlook for full year 2017 supported by our increasing production volume.”

“At the same time, our business transformation initiatives across the value chain are progressing well with a view towards enhancing our competitive strengths.”

Net profit attributable to owners of the Company came in lower at US$59 million mainly due to the recognition of deferred tax income of US$131 million in the previous period. Underlying profit, however, tripled to US$137 million.

GAR’s financial position continued to be robust with an adjusted net gearing ratio5 of 0.39 times as at 30 June 2017 despite a slight decrease in total consolidated assets to US$8.2 billion primarily due to a decline in trade receivables.

Higher plantation output was one of the major factors that boosted the financial performance of our upstream business. EBITDA1 grew by 64 percent year-onyear to US$244 million during the first six months, whilst for second quarter 2017 GAR reached a 42 percent year-on-year growth in EBITDA1 to US$103 million.

The palm and laurics continued its contribution to GAR’s consolidated EBITDA1 although the higher CPO market prices in the first half 2017 resulted in margin compression. Second quarter 2017 recorded palm and laurics EBITDA1 of US$40 million, resulting in the first six months achieving US$79 million with a margin of 2.3%.

As at 30 June 2017, GAR’s total planted area stood at 486,299 hectares as the Company continues replanting its older estates. The total plantation area comprised of 79 percent nucleus plantations and 21 percent plasma smallholder plantations. GAR is focusing on replanting to support production growth through intensification, by using next-generation, higher-yielding planting materials.

Total mature area increased by 7,300 hectares to 473,698 hectares with fruit yield of 9.9 tonnes per hectare in the first half 2017, higher by 33% from the last period’s yield. Palm product output in the second quarter of 2017 recovered by 41 percent year-on-year, contributing to first half 2017 palm product of more than 1.3 million tonnes.


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