Palm oil producers record unexpected lower profit

JAKARTA — Around two out of three national biggest palm oil producers who released their financial report on Wednesday (02/27) booked lest than expected net profit, declining more than 30%.

Salim Group’s PT Salim Ivomas Pratama Tbk pocketed IDR1.16 trillion net profit last year. The figure is smaller than Bloomberg analysis estimation at IDR1.28 trillion. The SIMP-coded company accomplishment is also smaller than 2011 level at IDR1.67 trillon.

PT London Sumatra Plantations Tbk, SIMP affiliated company, experienced a similar condition. The LSIP-coded company net profit in 2011 was only IDR1.12 trillion, much smaller than initial target at IDR1.29 trillion. The figure is 51.78% lesser than the previous year position.

“2012 was a year full of challenges for the development of the agricultural sector due to the fluctuating commodity price,” said Salim Ivomas’s President Director Mark Wakeford, Wednesday (02/27). (msw)