Rea Holdings profits rise as output increases

24th Aug 2011 14:28

Indonesian palm oil producer REA Holdings posted a surge in profits in the six months to 30 June as it upped production and benefited from higher prices, with a coal production operation also proving a nice little sideline. Pre-tax profits rose to $36.9m from $20.1m on sales that soared to $75.5m from $50.3m.While prices of both commodities have been strong, the company said higher input costs and expenses related to the start-up of coal operations held back profits."Notwithstanding current uncertainties in the international financial markets, prices within the vegetable oil complex have remained at historically high levels as, indeed, have coal prices," the company said. "The fundamentals of both markets still appear good with physical consumption absorbing available supply at current price levels and rising demand from both China and India underpinning both markets."