SINGAPORE - Singapore-based Wilmar International Ltd posted its first-ever quarterly loss on Thursday, saying untimely purchases of soybeans hurt its oilseeds and grains business, while its sugar segment was hit by bad weather and hedging losses.
The world's largest palm oil processor and one of the biggest soybean buyers posted a net loss of $220 million for the three months ended June versus a net profit of $193.2 million a year earlier. Revenue rose nearly 1 percent to $9.37 billion.
Soyabean oil futures on the Dalian Commodity Exchange, a benchmark for China, showed sharp variations during the quarter. Prices rose as high as 6,644 yuan ($1,001) a metric ton on April 21 and then dropped to as low as 5,838 yuan in May before climbing to 6,266 yuan to end the quarter.
U.S. soybean futures rose about 27 percent in the second quarter, while palm oil slumped 13.7 percent during the period.
Pretax profit at its tropical oils segment rose 13.6 percent to $186.3 million thanks to its downstream businesses, while plantation performance was affected by lower production volume.
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Its oilseeds and grains segment recorded a loss before tax of $343.8 million, while the sugar business pretax loss widened.
"Notwithstanding the one-time loss in 2Q2016, the group's integrated agribusiness model remains intact and resilient," Kuok Khoon Hong, chairman and chief executive officer, said in a statement.
"Barring unforeseen circumstances, the group's performance for the rest of the year is expected to be satisfactory."
Its shares closed flat at S$3.09 on Thursday ahead of the results. The company had flagged the loss in July.
