|Bid||0.2200 x 0|
|Ask||0.2250 x 0|
|Day's range||0.2200 - 0.2300|
|52-week range||0.2000 - 0.3200|
|Beta (3Y monthly)||0.27|
|PE ratio (TTM)||73.33|
|Earnings date||25 Feb 2020 - 2 Mar 2020|
|Forward dividend & yield||0.01 (2.58%)|
|1y target est||0.21|
LONDON/SINGAPORE, Nov 1 (Reuters) - Palm oil plantation firm Golden Agri-Resources Ltd said it has agreed to take over the sugar trading business of international commodities and energy trader RCMA Group as part of its diversification strategy. The takeover builds on Golden Agri's previous investments in sugar trading in Europe in 2018 and reflects its intention to diversify from being a pure palm player, the Singapore-listed company said in a statement on Friday. "GAR (Golden Agri) has been looking for opportunities to expand our agricultural trading beyond palm oil to create a more diverse base for our business," said Paul Hickman, head of global vegetable oil and oilseeds for Golden Agri.
International commodities and energy trader RCMA Group is to transfer its sugar division to Golden-Agri Resources, effective Friday, a notice to clients seen by Reuters said. "The decision to transfer our sugar business is aligned with RCMA Group's vision to become a diversified group with energy, electricity and consumer goods and services," the notice said. RCMA's sugar division is a leading player in the white sugar containerized trading business.
Palm oil from an illegal plantation inside an Indonesian rainforest home to endangered orangutans has found its way into the supply chains of major consumer brands including Unilever and Nestle, according to a U.S.-based environmental group. A Rainforest Action Network (RAN) investigation showed Asia-based palm oil traders Golden Agri-Resources (GAR) and Musim Mas Group bought oil from two mills that sourced palm fruit from a small, privately-owned plantation on Sumatra island. Palm oil is the world's most widely used edible oil, found in everything from margarine to soap, but has faced scrutiny in recent years from green activists and consumers, who have blamed its production for forest loss, fires and worker exploitation.
SINGAPORE (May 14): Golden Agri-Resources (GAR) recorded 1Q19 earnings of US$18 million ($24.7 million), 55% higher than last year, mainly contributed from the gain on disposal of a subsidiary in Indonesia for US$11.5 million. Excluding exceptional items and other non-operating item, net effect of net gain or loss from changes in fair value of biological assets and depreciation of bearer plants, underlying profit for 1Q19 came in 53% lower at $12 million.
SINGAPORE (Mar 5): RHB Research is reiterating Golden Agri-Resources at “sell” with an unchanged target price of 23 cents after earnings reversed further into the red in 4Q18, with FY18 core net loss coming in significantly below expectations. To recap, Golden Agri reported US$91.3 million of losses from a profit of US$40 million in FY17. For 2019, Golden Agri intends to replant 15,000ha in 2019 from 10,500ha to rejuvenate its tree age profile of 16 years on average.
SINGAPORE (Feb 27): Golden Agri-Resources, the Indonesia based palm oil plantation with integrated operations for the production of edible oil and fat, swung back into profitability in 4Q18 with earnings of US$79.3 million from a loss of US$29.1 million a year ago.However, Golden Agri still recorded a net loss of US$2 million for FY18 primarily because of foreign exchange loss, loss from changes in fair value of biological assets and deferred tax expense. In FY17, Golden Agri reported earnings of US$74 million.In FY18, Golden Agri recorded revenue of US$7.2 billion in FY18, a slight decrease compared to the previous year as affected by weaker palm oil prices.Golden Agri says declining palm oil prices continued to be the main factor in weaker performance in FY18, especially from the plantations and palm oil segment. The industry as a whole saw very strong plantation output in FY18, resulting in high inventory levels and lower prices.In the Plantations and palm oil mills segment, 4Q18 fruit yield reached 5.9 tonnes per hectare, 11% lower quarter-on-quarter due to seasonality. Despite the reduced mature area, harvested fruits expanded to 10.5 million tonnes with a fruit yield of 22.5 tonnes per hectare, at the top of the industry range. Palm product output reached a new record of slightly over three million tonnes in 2018, 12% higher than last year. As a result, Golden Agri’s FY18 upstream EBITDA reached US$391 million with a margin of 27%.Revenue from the Palm, laurics and others segment reached US$7.1 billion, slightly lower than last year due to lower selling prices. Sales volume was maintained at 10.2 million tonnes although the volume at China oilseeds business contracted after the divestment of the Tianjin plant. With expanded 4Q18 EBITDA of US$120 million, full year EBITDA was US$184 million, 11% higher compared to the previous year.For FY18, the board has proposed a final dividend of 0.58 cents per share or approximately US$54 million in total.Franky O. Widjaja, Golden Agri Chairman and CEO, says: “FY18 was a challenging year for operators in the palm oil industry. I am pleased that GAR once again proved resilient in unfavourable circumstances, based on our long-term investment in a vertically integrated operation. Our focus remains on building GAR’s core competitive edge, delivering sustainably produced palm oil and palm-based products in an efficient and innovative way.”Shares in Golden Agri closed at 28 cents on Tuesday.
Some of the world's major palm oil users, including Nestle, Unilever, and Mondelez, are trying out new satellite technology to track deforestation, as pressure grows on them to source the ingredient responsibly. Palm oil buyers have toyed with satellite imagery for years, but have now ramped up their use as they rush to meet a pledge of zero net deforestation by 2020, set by global umbrella body the Consumer Goods Forum.