Singapore palm oil firms put on better showing

The fortunes of Singapore-listed palm oil players are improving, amid a sharp recovery in these firms’ second quarter bottom lines after recent gains in crude palm oil prices. These prices hit rock bottom several months ago amid slowing output, as the global recession hammered demand for the biofuel that is made from palm oil. Hurt by lower selling prices in previous quarters, the likes of Indofood Agri Resources, Golden Agri-Resources and First Resources all suffered a slump in their net income for the three months ended March 31. However, Wilmar, the world’s largest listed palm oil firm, was a notable exception during that period, with its profits aided by contributions from non-oil segments, such as oilseeds and grain products. While Indofood and Golden Agri both reported lower second-quarter earnings compared with the same period a year earlier, the improvements were evident on a quarter-on-quarter basis. (August 15, 2009)