Singapore-based plantation group GMG Global posted a third-quarter net profit of S$12 million ($9.8 million), up 4% from S$11.5 million in the second quarter, but down 56% year on year from $27.4 million, results released last week showed.
Revenue for the quarter ended September stood at S$304.3 million, up 11% from Q2's S$273.8 million but down 2.5% from S$312.3 million in the year-ago period, according to the results released on October 25.
The company attributed the year-on-year weaker performance to lower average prices for natural rubber in Q3. Average prices during Q3 stood at S$3,725/mt against S$4,636/mt in Q2 and S$5,636/mt in Q3 2011.
"Outlook for natural rubber in European and US markets is still likely to be weak but demand from China is more stable and positive," GMG said.
GMG plans to increase its annual natural rubber production to 450,000 mt in 2014, up from 206,947 mt in 2011.
China's Sinochem International owns a 51% stake in GMG.
