- Upstream business showed sequential improvement in 2H23; Management expects favourable CPO price in 2024.
A soft ending to FY23
- Golden Agri-Resources (SGX:E5H)’s FY23 revenue fell 15% y-o-y to US$9.8b, due to lower crude palm oil (CPO) prices, but partly offset by higher sales volume. EBITDA and PATMI decreased 46% and 75% y-o-y to US$986m and US$198m respectively. Underlying PATMI fell 64% y-o-y to US$328m.
- - Read this at SGinvestors.io -
- Fresh fruit bunch (FFB) and palm product output fell 5% and 4% respectively due to heavy rainfalls and replanting. For the Palm, Laurics and Others segment, revenue and EBITDA in 2023 declined 15% and 50% y-o-y to US$9.6b and US$507m respectively.
Final dividend of S$0.00613
- - Read this at SGinvestors.io -
Management expects favourable CPO price in 2024
- Golden Agri-Resources saw some improvement in its upstream business in 2H23 compared to 1H23 as higher palm product output and lower fertiliser costs offset the decline in CPO price in 2H23. Management believes the CPO price outlook remains favourable in 2024, supported by supply tightness and growing demand from a pick-up in biodiesel mandates in Indonesia and food demand growth.
- The latest ONI data shows increasing likelihood of the current El Nino to last beyond 1Q24, which could support CPO prices.
Fair value estimate
- Read more at SGinvestors.io.
