\nNet profit in the first nine months of this year was also down 66.8 per cent compared to the same period last year, falling from S$472.3 million to S$157 million. This was attributed to exceptional items, as well as falling trading volumes and prices of grains, sugar and rice.<\/span><\/strong><\/span><\/p>\n SINGAPORE: Olam’s net profit for the quarter ending Sep 30 was S$31 million, a 30 per cent drop from S$44.3 million in the same quarter last year, the agriculture company announced on Friday (Nov 13).<\/p>\n Net profit in the first nine months of this year was also down 66.8 per cent compared to the same period last year, falling from S$472.3 million to S$157 million, Olam said.<\/p>\n The fall for the third quarter and the first nine months of 2015 was attributed to exceptional items.\u00a0In the third quarter 2014, Olam recorded a net exceptional gain of S$12.1 million while in the third quarter 2015, it recorded a net exceptional loss of S$3.2 million, the company said.<\/p>\n In the first nine months of 2015, Olam booked a net exceptional loss of S$101 million, compared with net exceptional gains of S$289.3 million in the same period last year, it added.<\/p>\n However, sales volumes and revenues for the quarter were both up – 3 and 4 per cent, respectively – as Olam continued to grow in its prioritised platforms, it said, adding that all segments registered growth except for Food Staples & Packaged Foods.<\/p>\n In that segment, volumes fell 21.6 per cent mainly due to lower traded volumes in grains, sugar and rice, Olam said. Revenue fell by 31.1 per cent as a result of the lower volumes, as well as lower prices of all the commodities in this segment.<\/p>\n MITSUBISHI NOW OLAM’S SECOND-LARGEST SHAREHOLDER<\/p>\n Olam also raised approximately S$915 million by issuing 332.73 million new ordinary shares to Mitsubishi Corporation at S$2.75 per share, it announced. This represents approximately 12 per cent of Olam’s enlarged and paid-up share capital (excluding treasury shares).<\/p>\n Mitsubishi\u00a0also acquired 222 million shares from the Kewalram Chanrai Group, which represents approximately 8 per cent of Olam’s enlarged and paid-up share capital excluding treasury shares.<\/p>\n This results in\u00a0Mitsubishi\u00a0being Olam’s second-largest shareholder with a 20 per cent stake in the company. Temasek Holdings remains the majority shareholder with a 51.4 per cent stake.<\/p>\n On Oct 16, Olam completed the acquisition of ADM’s cocoa business at an enterprise value of US$1.204 billion, making them one of the three largest integrated cocoa beans and products suppliers in the world.<\/p>\n Said Mr Sunny Verghese,\u00a0Olam co-founder, Group Managing Director and CEO: \u201cWe are pleased to have taken significant steps this quarter toward realising our long-term strategy.<\/p>\n \u201cThe addition of Mitsubishi Corporation as a new long-term strategic shareholder places us in a much stronger position to undertake further growth opportunities in our prioritised platforms. Further, the acquisition of ADM Cocoa makes us one of the top three integrated cocoa beans and products suppliers in the world, effectively transforming our competitive position in the industry.\u201d<\/p>\n TOUGH TIMES FOR SINGAPORE-LISTED COMMODITIES TRADERS<\/p>\n Olam is not the only Singapore-listed commodities firm to report lower earnings. Noble Group, Asia’s biggest commodities trader by sales – which was hit by losses in its metals and mining segment – saw net profit for the quarter sink 84 per cent to US$24.7 million.<\/p>\n Wilmar International, the world’s largest palm oil trader, saw Q3 profit drop 35 per cent to US$275.9 million. Wilmar was largely impacted by marked-to-market losses. One analyst said he is not expecting a turnaround in the next few months.<\/p>\n “I think the sentiment will remain negative, given the mixed picture in the agri-commodities space, as well as industrial commodities,” said Mr Mervin Song, an investment analyst at DBS Vickers. “And for each individual company, there are also specific catalysts that need to occur to boost confidence in their business models.”<\/p>\n Noble, for example, has said it plans to further beef up its balance sheet, by raising at least US$500 million through asset disposals or from a strategic investor. This comes amid heavy selling of Noble’s shares, as the firm battles accusations that it has inflated its earnings through accounting loopholes.<\/p>\n The global commodities price slump has spilled over to the stock market, with all three Singapore-listed commodity traders in the red so far this year. Olam is down 5 per cent, while Wilmar has lost 10 per cent. The biggest loser, Noble, has fallen almost 60 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":" Olam net profit down 30% year-on-year Net profit in the first nine months of this year was also down 66.8 per cent compared to the same period last year, falling from S$472.3 million to S$157 million. This was attributed to exceptional items, as well as falling trading volumes and prices of grains, sugar and rice. …<\/p>\n","protected":false},"author":3,"featured_media":43546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[36],"tags":[],"class_list":["post-43541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-te-public"],"yoast_head":"\n