Sinarmas Establishes Malaysian Palm Oil Trading Arm

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Wednesday, 30 November 2011 18:21

Written by Patrick Chang

Sinarmas Group,Golden Agri-Resources,Establishes Malaysian Palm Oil Trading Arm

Theindonesiatoday.com - Golden Agri-Resources (GAR), a company controlled by Sinarmas Group, has established Malaysian trading arm for palm oil and related products.

GAR told SINGAPORE Exchange Wednesday that it has incorporated a wholly owned subsidiary, Golden Agri International (M) Trading Sdn. Bhd. (GAIMT), a company established in Malaysia with an initial issued and paid up capital of RM2.00 comprising 2 ordinary shares of RM1.00 each. The principal activity of GAIMT is that of trading in palm oil and related products.

Golden Agri booked net profit of US$520 million in first 9 months of 2011, doubled from US$254 million in the same period of last year. Revenue also doubled to US$4.63 billion from US$2.32 billion a previous year.

For third quarter of 2011, the company's net profit increased 11% to US$110 million and revenue jumped 62% to US$1.56 billion.

The profit growth was attributable to increase in average selling price in line with average CPO FOB price strengthening by 41% year-on-year to US$1,117 per ton and strong recovery of palm products output by 24% year-on-year to 1.94 million tons.

While better third quarter financial results year-on-year was supported by 13% growth in palm products output and 25% increase in CPO FOB prices.

Indonesia operations contributed revenue of US$3.78 billion in first 9 months of 2011 while China operations contibuted revenue of US$847 million.

Financial results of Indonesia Operations significantly increased with the hike in CPO FOB prices by 41%. EBITDA margin was lower mainly due to much higher export tax rates in YTD Sep 2011 (15%-25%) compared to the rates in YTD Sep 2010 (3%-6%).

Golden Agri targets to expand its palm oil plantations by approximately 20,000 hectares this year, build milling capacity in line with the growth in fruits production, and construct additional downstream processing capacity in strategic locations and extend distribution and logistic facilities to enhance its integrated operations.

It said capex for 2011 growth strategy is estimated at approximately US$400 million. (Theindonesiatoday.com)

Sinarmas Group Malaysian Palm Oil

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