[Photo Credit: Bumitama Agri Ltd]
Looking for more investing opportunities in the current oil and gas downturn? Here’s another hidden gem: Bumitama Agri.
Words by Calvin Yeo
As a follow-up to our previous review on Nam Cheong, we now look beyond oil and gas to another closely-related sector that has also been affected negatively – the palm oil sector.
Crude palm oil prices have dropped significantly due to oversupply and the collapse in crude oil prices.
The two sectors share a mutually dependent relationship, as crude palm oil – which is obtained from fresh fruit bunches of oil palms cultivated in plantations – can be converted to biodiesel and serve as a replacement for some aspects of crude oil.
In the past, high crude oil prices actually helped create a support for falling crude palm oil prices. Now that crude oil prices have collapsed, crude palm oil prices have also taken a hit.
That being said, when crude oil prices eventually recover, palm oil players will also benefit.
Bumitama Agri – Young Plantations and Strong Growth
Amongst the palm oil players, Bumitama Agri looks the most promising. It has one of the youngest plantations and continues to exhibit not only strong growth in …read more