SINGAPORE (Yosefardi) – Palm oil producer Kencana Agri Ltd, controlled by Indonesian rich family, expects to book a loss for 2013, mainly due to unrealised foreign exchange losses resulting from the depreciation of the rupiah against the US Dollar.
Although the Group expects to record an operating profit in 4Q2013, the consolidated result for the full year is expected to be a loss, the company said.
Kencana Agri booked net profit after tax of US$17.3 million in 2012, fell 25% from previous year while revenue declined 4% to US$301.88 million.
For first half of 2013, the company reported revenue of US$133.2 million as compared to US$125.9 million in 1H 2012. The increase was mainly due to higher volume of CPO sold offset by lower ASP.
Operating profit and net profit after tax were US$4.9 million and US$0.2 million respectively, lower than the previous year due to lower ASP of CPO and higher financial expenses. Net financial expenses totaled US$4.7 million in 1H 2013, up 71% as compared to the corresponding period last year.