Wilmar International Ltd. (WIL), the largest palm oil processor, said fourth-quarter profit dropped 4.7 percent after palm oil prices declined and it booked a lower gain in the value on its plantations.
Net income was $476.8 million in the three months ended Dec. 31, from $500 million a year earlier, the Singapore-based company said today in a statement. Sales increased 0.9 percent to $11.6 billion.
Wilmar was the worst peforming stock last year on the Singapore’s benchmark index amid losses at its oilseeds unit, which processes soybeans into meal and oil. It recorded a $28.8 million gain on its plantations, from a $262.7 million gain a year ago, the company said.
“Most key segments delivered higher profit from operations in the fourth quarter, with the exception of plantations and palm oil mills, which was affected by lower crude palm oil prices,” the palm oil processor said in today’s statement.
The stock lost 1.6 percent to S$3.68 at the close in Singapore yesterday. The announcement today was made before the start of trading.
Fourth-quarter profit, excluding non-operating items and biological asset gains, was $400.9 million, compared with $264.5 million a year earlier. That compares with the $412.2 million average estimate of four analysts surveyed by Bloomberg News.
Full-year net income fell 22 percent to $1.26 billion, beating the $1.1 billion average estimate of 21 analysts compiled by Bloomberg.
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