Sunday, June 13, 2010

Global Palm Resources posts multiple fold net profit increase

11/06/2010 (Channel News Asia), Singapore - Mainboard-listed palm-oil producer Global Palm Resources Holdings has reported a net profit of about S$1.7 million for its first quarter ended March 31.

This is a multiple fold increase from a net profit of just S$100,000 reported last year.

Global Palm said the results were supported by higher average selling prices of crude palm oil and palm kernels.

Revenue rose 31 per cent to S$10.2 million.

World Market for Refined Palm Oil and Its Fraction
the palm oil
However, despite strong selling prices for its products in the first quarter, the palm oil producer expects price volatility this year.

Global Palm's Executive Chairman and CEO Dr Suparno Adijanto said the company expects demand for palm oil to maintain its strength supported by rising food requirements from China, India and emerging markets.

He added that there will also be demand from the biofuel, oleochemicals and compound feed industries.

Looking ahead, the company remains confident of the global demand for palm oil and is focusing on two key areas to drive future growth.

It intends to double the size of its current cultivated oil palm plantation land within the next three years by developing existing uncultivated land banks, and by acquiring other oil palm plantations.

It has earmarked about S$30 million of the proceeds raised from its Initial Public Offering for expansion.

In addition, it is also reviewing its cost structure to achieve a cost-competitive model in the long-run.

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