Singapore-based rubber plantation group GMG Global's rubber output in the third quarter fell 4% year on year to 78,732 mt, from 81,664 mt a year ago, while net profits plunged 87% to S$1.54 million ($1.1 million), from S$12.2 million, because of lower natural rubber prices, the company said Friday. Its Q3 revenue stood at S$243.75 million, down 20% from S$304.32 million year on year.
Natural rubber prices averaged S$3,096/mt in Q3, down 17% from S$3,726/mt in the corresponding quarter last year.
"Prices of rubber are at its lowest since 2010, and we believe that current levels provide the base for continued rubber production, below which it will not make economic sense. As such, we believe that the worst may be over for the industry, and we should see an impending global recovery," said Yao Xingliang, GMG's chief executive officer.
"Barring adverse global developments, the group expects natural rubber market prices to hover around $2,300/mt for the rest of 2013," the company said. For the first nine months of 2013, natural rubber prices averaged S$3,429/mt, down 19% from S$4,232/mt year on year, the company said.
Sales volume over January-September however, were higher, rising 6% to 215,181 mt from 203,403 mt a year ago.
GMG's January-September net profit stood at S$15.7 million, down 56% from S$35.4 million in the corresponding nine months of 2012. China's Sinochem International owns a 51% stake in GMG, with the other
49% interest held by 19 stakeholders comprising companies and individuals.
