GOLDEN Agri-Resources on Monday (Nov 14) reported a 148 per cent increase in earnings to US$285 million for the third quarter ended September, from US$115 million in the corresponding period last year.

This brought earnings for the first nine months of FY2022 (9M FY2022) up 151 per cent year on year to US$675 million.

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) for 9M FY2022 was 62 per cent higher at US$1.3 billion, while underlying profit grew 88 per cent to US$726 million.

The company attributed the improved performance to higher palm oil prices, with market prices for crude palm oil (CPO) rising 23 per cent in the nine-month period.

While partially offset by lower sales volume, the increase in palm oil prices drove 9M FY2022 revenue up 18 per cent to US$8.6 billion.

“Both upstream and downstream businesses performed splendidly during the nine months of 2022 with our downstream business achieving the largest Ebitda growth,” Golden Agri-Resources said in a bourse filing. As of Sep 30, its planted area stood at some 535,000 hectares, of which 503,000 were mature trees.

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The company noted that palm product output grew 21 per cent in Q3, while the sales volume of its downstream business rose 34 per cent quarter on quarter after the temporary export ban was lifted.

Golden Agri-Resources said that it remains “cautious” of uncertainties affecting the market – including changes in trade policies and a potential global recession – but added that the outlook for the palm oil industry is expected to remain favourable.

The counter closed 3.6 per cent or S$0.01 higher at S$0.285 on Monday, before the announcement.