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Golden Agri-Resources achieves record earnings for the nine-month period of 2021

Posted: Nov 12, 2021 4 minute read GAR 0 Likes
  • EBITDA for the first nine months of 2021 reached a record of US$828 million, a substantial increase of 164 percent
  • Results were supported by continued high CPO market prices and strong palm product output, which grew by 22 percent to 3 million tonnes


Singapore, 12 November 2021 – Golden Agri-Resources Ltd (“GAR” or the “Company”) achieved a record revenue of US$7.3 billion for the nine-month period, after another robust performance in the third quarter of 2021. This represented a 46 percent increase over last year’s performance for the same period and was largely due to continued strong production and palm oil market prices.

During the nine-months, CPO market prices (FOB Belawan) increased by 74 percent from the same period last year, averaging US$1,110 per tonne. After deducting the export tax and levy, the average net CPO price was US$765 per tonne, or 31 percent higher than in previous year’s period. For the third quarter only, revenue reached US$2.8 billion, a year-on-year increase of 76 percent, based on both higher average selling prices and an increase in sales volume. The sustained increase in palm oil prices propelled EBITDA for the third quarter to US$305 million, contributing to year-to-date EBITDA of US$828 million. This was a substantial increase by 164 percent and a record nine-month period EBITDA for the Company. Year-to-date underlying profit reached US$386 million, also much higher than the US$9 million achieved in the previous year.

The plantations and palm oil mills segment benefitted from the higher plantation output and the continuing uptrend in CPO market prices. The performance of palm, lauric and others segment also continued to be favourable in line with the healthier business environment.

On the outlook, Mr Franky O. Widjaja, GAR Chairman and Chief Executive Officer commented: “Tight global vegetable oil supply persists, and the ongoing La Niña is another risk factor that can impact supply in the short term. Extremely high rainfalls in Southeast Asia may hinder the oil palm harvesting process, while extreme drought could impact oilseeds production in South America and the United States. Meanwhile, demand has not been significantly affected despite high prices, as is reflected in the tight stock positions. These factors are expected to support continued strong CPO market prices. Notwithstanding the more conducive market environment, we remain cautious of any uncertainties from the lingering global COVID-19 pandemic. Looking forward, industry prospects continue to be positive given palm oil’s important role in supplying the growing global vegetable oil demand. Compared to other vegetable oils, oil palm plantation utilises up to seven times less land to produce the same amount of oil. This is crucial in solving the challenging food security amidst a growing world population.”

As of 30 September 2021, GAR’s planted area, including plasma, stood at approximately 537 thousand hectares, of which 92 percent was mature. Third-quarter palm product output saw a five percent increase compared to last year, with a 4.7 tonnes per hectare fruit yield. Nine-month yield registered at 15.2 tonnes per hectare, ten percent higher than last year. The total output of palm products during the first nine months of 2021 was higher by 22 percent, reaching 2.3 million tonnes.

Sales volume of our downstream business in the third quarter and year-to-date 2021 expanded by twelve and two percent, respectively, compared to the same periods last year.

Recognising the need for a strategic approach to sustainability that encompasses GAR’s upstream, downstream and corporate units and functions, the Company has restructured its sustainability division, appointing Anita Neville as Chief Sustainability & Communications Officer. GAR will further strengthen its sustainability efforts, aligning with Government of Indonesia targets on climate change and reinforcing its commitment to responsible sourcing.

In relation to sourcing, as of the third quarter of 2021, we have achieved 94 percent Traceability to Plantation for our palm supply chain and expect to achieve 100 percent by end of 2021. Our effort has included the profiling of 91,910 independent smallholders through our Ksatria Sawit programme. Smallholder palm fruit enters our supply chain through a network of dealers and suppliers. In order to improve their productivity and incomes while observing sustainable production practices, our field teams engage with these suppliers providing training, while collecting valuable data to help us achieve our dual objective of reducing deforestation while supporting economic development.

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About Golden Agri-Resources Ltd (GAR)

GAR is one of the leading palm oil plantation companies with a total planted area of 536,572 hectares (including plasma smallholders) as at 30 September 2021, located in Indonesia. It has integrated operations focused on the production and distribution of an extensive portfolio of palm-based products.

Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$2.2 billion as at 30 September 2021. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.52 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.

GAR is focused on responsible palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products globally. GAR’s products are delivered to a diversified customer base in over 70 countries through its global distribution network with shipping and logistics capabilities, destination marketing, on-shore refining and ex-tank operations in many countries. GAR also has complementary businesses such as soybean-based products in China, sunflower-based products in India, as well as sugar businesses.


For media enquiries, please contact:
Wulan Suling
Mobile: +62 818 909 900
Email: [email protected]  

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