- Full year EBITDA grew by 22 percent to US$697 million while Underlying Profit achieved
at US$272 million
- Increased contribution from downstream business to EBITDA
resulted in stronger year-on-year results despite lower average CPO
prices
- Proposed final dividend of 0.58 Singapore cents per share for full year 2019
performance, same with the previous year's distribution
Financial Highlights
US$'million
|
Year ended 31
Dec
|
Change
|
Quarter
ended
|
Change
|
2019
(FY 2019)
|
2018
(FY 2018)
|
31 Dec
2019
(4Q
2019)
|
30 Sep
2019
(3Q
2019)
|
Revenue
|
6,432
|
7,167
|
-10%
|
1,702
|
1,563
|
9%
|
Gross
Profit
|
831
|
1,007
|
-17%
|
299
|
188
|
59%
|
EBITDA[1]
|
697
|
573
|
22%
|
392
|
107
|
267%
|
Underlying Profit[2]
|
272
|
181
|
50%
|
284
|
3
|
8673% or
n.m
|
Net
Profit/(Loss)[3]
|
194
|
(2)
|
n.m
|
240
|
0.8
|
n.m
|
Earnings/(Loss) per Share[4]
(US$ cents)
|
1.56
|
(0.01)
|
n.m
|
1.92
|
0.01
|
n.m
|
SINGAPORE, Feb. 28, 2020 /PRNewswire/ -- Golden
Agri-Resources Ltd and its subsidiaries ("GAR" or the "Company")
showed a robust performance ending the full year with
EBITDA[1] at
US$697 million, growing by 22 percent from last year with
contribution from the downstream business at 57 percent.
Underlying profit[2] increased by 50 percent
to US$272 million in 2019.
Fourth quarter EBITDA[1] reached US$392 million
supported by strengthening palm oil prices during the
quarter and a net fair value gain of financial assets of
US$214 million recorded in accordance
with IFRS 9. Underlying profit[2] for the fourth
quarter was also higher at US$284
million.
This performance was achieved despite a ten percent lower
revenue of US$6.43 billion in
2019. Weaker CPO market prices and plantation output continued
to impact revenue. CPO market prices (FOB Indonesia) averaged
US$523 per tonne during 2019, a
decrease of seven percent compared to the previous year.
Mr. Franky O. Widjaja, GAR Chairman and Chief
Executive Officer commented on the results: "I am pleased
to see GAR close the year with improved results despite the weak
CPO price in 2019. Prices strongly rebounded towards the end of the
year supported by a tightening supply and demand situation. Supply
growth in 2020 is expected to slow down further given dry weather
conditions last year, while demand will be boosted by the B30
biodiesel mandate implementation in Indonesia. While we believe that the strong
CPO price trend will continue, the appearance of the COVID-19
epidemic in China is a new risk
factor. While we continue to monitor development of the outbreak
closely, we expect the impact on palm oil demand to be modest and
short term."
For GAR's 2019 performance, the Board proposes a final
dividend of 0.58 Singapore cents
per share or approximately US$55
million in total, representing 20 percent of underlying
profit[2]. The proposed
dividend will be distributed on 18 May 2020 subject to
approval from GAR's shareholders at the Annual Meeting.
Segmental Performance
Plantations and Palm Oil Mills
As at 31 December 2019, GAR's planted area stood at
498 thousand hectares, of which 21 percent owned by plasma
smallholders. The accelerated replanting of old estates totalled
17,200 hectares in 2019, bringing down the average age of trees to
16 years. The new estates use next-generation, higher yielding
planting materials, and are designed to accommodate future
mechanisation to improve efficiency and reduce cost.
Fourth quarter 2019 fruit yield reached 5.8
tonnes per hectare, leading to full year yield of 21.5 tonnes per
hectare. Harvested fruits for full year 2019
totalled 9.9 million tonnes, which was processed into
over 2.9 million tonnes of palm products. Subsequent to a bumper
crop in 2018, palm product output moderated by four
percent during the year, also impacted by dry weather
conditions and the replanting programme.
Upstream quarterly EBITDA[1] improved significantly to
US$132 million with the rebound in CPO prices towards end of
the year, contributing to full year EBITDA[1] of US$299 million. Despite
lower average CPO market prices and plantation output, 2019 EBITDA
margin remained robust at 23 percent. The EBITDA of this
segment includes the allocated net fair value gain on financial
assets.
Palm, Laurics and Others
Our downstream segment mostly consists of the processing and
merchandising of palm and oilseed based products comprising bulk
and branded products, oleo-chemicals and other vegetable oils, as
well as production and distribution of other consumer products in
China and
Indonesia.
The palm, laurics and others segment generated revenue of
US$6.4 billion during 2019, ten
percent lower than last year due to lower selling prices. However,
segmental EBITDA[1]
reached US$398 million, more than double from last
year and translating to a margin of 6.2 percent. This
performance was contributed primarily by biodiesel and destination
sales. The EBITDA[1]
also includes higher allocated net fair value gain on financial
assets. With GAR's integrated business model, the contribution of
downstream business to total consolidated EBITDA[1] expanded to 57 percent from
32 percent last year.
[1] Earnings before tax,
non-controlling interests, interest on borrowings, depreciation and
amortisation, net gain or loss from changes in fair value of
biological assets, foreign exchange gain or loss, and
exceptional items.
|
[2] Net
profit attributable to owners of the Company,
excluding net effect of net gain or loss from changes in fair value
of biological assets, depreciation of bearer
plants, exceptional items, foreign exchange
gain or loss, and deferred tax
expense.
|
[3]
Net profit/loss attributable to owners of the
Company.
|
[4]
Earnings/loss per share is net profit or
loss attributable to owners of the Company divided by
weighted average number of shares.
|
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SOURCE Golden Agri-Resources