Golden Agri-Resources performance continues to strengthen in H1 2021

August 25, 2021 - Golden Agri-Resources Ltd achieved a strong set of results during the first semester of 2021 with a more favourable environment despite the continued COVID-19 pandemic. This robust performance was primarily attributable to recovery in palm product output and sustained strong CPO market prices during the year, resulting in a 31 percent increase in revenue to almost US$4.5 billion. Average CPO market price (FOB Belawan) during first half 2021 was US$1,088 per tonne, an increase of 77 percent from last year.

On the results, Mr. Franky O. Widjaja, GAR Chairman and Chief Executive Officer commented: "The Board is proud of the continued strong performance delivered by GAR during the first semester of the year. Our financial position is also healthier resulting to lower leverage and a strengthened liquidity position. With its confidence towards the Company's performance and industry outlook, the Board declares the distribution of an interim dividend of 0.528 Singapore cents per share."

Despite the much higher export tax and levy charged during 2021, first-half EBITDA grew by 176 percent to US$523 million. Underlying profit and net profit saw a significant turnaround to US$246 million and US$153 million, respectively. The downstream business also contributed to these solid results as the industry environment was more favourable after the pandemic lockdowns last year.

Mr. Widjaja added: "Global vegetable oil supply has been very tight because of weather uncertainties in some producing countries. Particularly for palm oil, production recovery is also weaker than expected primarily due to the foreign labour shortage in Malaysia. These conditions are expected to remain until late 2021. Global demand, on the other hand, has been very encouraging and palm oil exports will continue to be strong in line with the improving market conditions in major consuming countries. We remain positive while staying prudent by closely monitoring industry supply and demand dynamics to be able to benefit from any prospective developments."