Feb. 28 (Bloomberg) -- Golden Agri-Resources Ltd., the world’s second-biggest palm oil producer, said fourth-quarter profit declined 93 percent as prices of the commodity declined.
Net income was $53.6 million in the three months ended Dec. 31, from $747.8 million a year earlier, the Singapore-based company said today in a statement. Revenue in the quarter gained 14 percent to $1.519 billion.
Golden Agri follows rival producers Sime Darby Bhd. and Felda Global Ventures Holdings Bhd. in reporting lower profits after palm oil prices fell 23 percent last year as inventories piled up and demand weakened. Palm oil, used in food and fuels, will probably drop further this year after Asian producers boosted acreage and global oilseeds supplies rose, according to Dorab Mistry, a director at Godrej International Ltd.
The company “is of the view that palm oil industry remains resilient with its robust fundamentals as demand for palm oil will continue to grow,” Chief Executive Officer Franky Widjaja said today in a statement. “Our focus for this year is to carry on with our expansion, organically and by way of acquisition.”
Shares gained 2.4 percent to close at 65 cents in Singapore today. The announcement was made after trading hours. The stock is unchanged this year, under-performing the 4 percent gain in the benchmark Straits Times index.
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