SINGAPORE - Wilmar International, the world's largest listed palm oil plantation firm, posted an unexpected 15 per cent decline in its second-quarter net profit, hit by losses on convertible bonds as its share price declined.
The company which has plantation estate in Indonesia and a number of edible oil processing facilities in China, said it remains positive on the prospect of Asian economies and is planning a major expansion into sugar.
Wilmar, which has a market value of US$29 billion, earned US$344 million for the quarter ended June, compared to US$407 million posted last year and analysts forecast of US$417 million.
'Net profit in second quarter was affected by a negative change in valuation of US$41.7 million for convertible bonds, partially offset by a net income from other investments of US$6.2 million,' the company said in a statement.
Its revenue climbed 18 per cent to US$6.76 billion for the April-June quarter.
Wilmar shares have declined 2.5 per cent since the start of the year, underperforming the broader Singapore market which gained 1 per cent. -- REUTERS
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