Press Releases

• Revenue in the first quarter of 2026 reached US$3.23 billion, up by 6% year-on-year, supported by expanded downstream business.
• EBITDA for the period was softer at US$241 million with a margin of 7.5%, primarily due to weaker contribution from the upstream segment.
• Financial position remained healthy with an improved gearing of 0.55 times.

Singapore, 15 May 2026: Golden Agri-Resources Ltd (“GAR” or the “Company”) delivered a resilient financial performance in the first quarter of 2026, amid escalating geopolitical tensions and volatility across financial and commodity markets. Average crude palm oil (CPO) market prices (FOB Indonesia) for the quarter declined by 2% year-on-year to US$1,136 per tonne compared to US$1,156 per tonne in the same period last year. Nevertheless, expanded merchandising volume from GAR’s downstream business drove a 6% year-on-year increase in revenue to US$3.23 billion, partially mitigating the impact of lower CPO prices.

Gross profit grew by 4% to US$450 million in the first quarter, while EBITDA was softer at US$241 million, at a margin of 7.5%. Underlying profit and net profit for the period were US$50 million and US$44 million, respectively.

The earnings moderation primarily resulted from a weaker contribution from the upstream segment, with a decline in both palm product output and average selling prices, as well as higher income tax expenses driven by higher taxable profits in certain subsidiaries and additional cost for provisioning.

GAR’s financial position as per 31 March 2026 remained healthy with a gearing ratio of 0.55 times and net debt to EBITDA of 0.24 times.

Industry Update

Escalating diesel prices caused by a global energy shortage have accelerated the adoption of higher biofuel mandates in countries including the United States, Indonesia, Malaysia, and Thailand. This surge in demand from the energy sector is adding pressure to vegetable oil supplies and sustaining higher prices.

Palm oil in particular has faced constrained production in early 2026, compounded by the structural challenges of ageing plantations and replanting cycles. Tightening supply is further exacerbated by developing El Niño conditions and potentially reduced fertiliser application driven by elevated input prices. Together, these factors are expected to keep CPO prices elevated in the near term, even as geopolitical tensions may ease.

Operational Update

As of 31 March 2026, GAR’s planted area was approximately 530,000 hectares, of which 483,000 hectares were mature. Nucleus and plasma estates made up 414,000 and 116,000 hectares of this area, respectively.

Fruit harvest for the first quarter of 2026 declined by 11% year-on-year to 1.92 million tonnes primarily due to preparation for replanting and Indonesia’s festive season in March 2026. As a result, upstream palm product output fell by 10% to 592,000 tonnes.

Downstream merchandising volume increased during the quarter despite a challenging market environment, supported by our diversified customer base and strong logistic capabilities. GAR remains focused on expanding its portfolio of higher value-added products in global markets.

Anticipating a stronger-than-usual dry season in Indonesia this year as a result of El Niño conditions, GAR remains vigilant in its approach to fire risk. The company has strengthened its detection and response capabilities, deploying new fire detection technology and continuing its close collaboration with communities. Through the Company’s Fire Free Village community fire prevention programme and government-mandated peat management initiatives, GAR is equipping communities with the education, tools, and early-warning systems needed to prevent and respond to fires effectively.

With these efforts in place, the Company is confident in its ability to manage fire risks and maintain consistently low fire impact rates across its concession area.

For more information, please contact: communications@goldenagri.com.sg