Golden Agri-Resources’ Q3 profit rises to US$162 million on higher plantation output
[SINGAPORE] Golden Agri-Resources (GAR) posted a net profit of US$162 million for its third quarter ended Sep 30, a 32 per cent increase from US$123 million in the previous quarter.
It did not provide figures for year-on-year comparisons for Q3, but in 2025 reported a net profit of US$124 million for the same period.
The rise in net profit was due primarily to higher plantation output and investment income received in Q3 2026, the company said in a quarterly business update on Thursday (Nov 12).
For the first nine months of 2026, its net profit stood at US$330 million, 16 per cent higher than the US$284 million logged in the year-ago period.
Revenue for Q3 was up 3 per cent at US$3.5 billion on a quarterly basis, and 6 per cent higher on the year at US$10.1 billion for 9M 2026.
This growth was supported by an appreciation in crude palm oil (CPO) prices, GAR said. The average price of FOB Belawan CPO rose to US$1,192 a tonne in 9M 2026, compared with US$1,094 in the year-ago period.
The upstream palm product output for Q3 – which includes CPO – increased 12 per cent to 808,000 tonnes from 724,000 tonnes in Q2.
Production expanded to 2.1 million tonnes in 9M 2026 from two million tonnes previously. GAR attributed this to “a strong rebound” in fresh fruit bunch (FFB) production in Q3, alongside improved oil extraction rates and higher purchases of third-party FFB.
Downstream sales volume in Q3 climbed 1 per cent on the quarter to 2.94 billion tonnes – from 2.91 billion tonnes previously – “despite continued volatility in the global markets”, the company said.
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For the quarter, gross profit was up 15 per cent at US$669 million from US$584 million in Q2.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 32 per cent to US$414 million, from US$315 million, also on a quarterly basis.
GAR said replanting activities have slowed down in recent months due to drought caused by El Nino, and it is working with the relevant parties to prevent, monitor and manage fires around its plantations.
The company does not expect the situation to have any material impact on its operations or financial performance, it added.
As at Sep 30, GAR’s gearing ratio stood at 0.6 times and its net debt-to-Ebitda ratio was 0.3 times.
Meanwhile, total liabilities were 18 per cent higher at US$5.8 billion, compared with US$4.9 billion as at Dec 31, 2025. Total assets stood at US$11.8 billion, up 10 per cent from US$10.7 billion over the same period.
Total equity as at Sep 30 was 4 per cent higher at US$5.9 billion, compared with S$5.7 billion as at Dec 31.
Interest-bearing debts were up 10 per cent at US$3.6 billion as at end-September, from US$3.2 billion in December.
GAR noted that near-term palm oil consumption is influenced mainly by ongoing geopolitical tensions, which affect energy prices and disrupt logistics, as well as the availability of competing vegetable oils.
It also said that El Nino conditions are expected to have an impact on the yield in 2027. Ageing trees in both Indonesia and Malaysia remain the key constraint on production growth in the industry, it added.
“These conditions should keep palm oil and other vegetable oil prices well-supported. However, price volatility, driven mainly by weather conditions, geopolitical developments, shifts in global trade policies and energy market dynamics, may persist in the near term,” GAR said.
Its shares ended Thursday 1.9 per cent or S$0.005 higher at S$0.27.
