SINGAPORE (Feb 27): Indofood Agri reported 4Q2014 earnings of IDR225.4 billion ($23.7 million), little changed from the IDR227.6 billion a year earlier, as the palm oil producer grappled with higher operating and finance expenses and lower commodity prices.

Revenue rose 11.8% to IDR4,192 billion.  

The results bring its full-year earnings to IDR758.7 billion, up 45%.

"2014 was a challenging year for the palm oil industry due to the effects of the global economic slowdown and higher supply of competing vegetable oils, particularly soybean oil," the company said in a statement today.

"Falling crude oil prices also reduced the discretionary usage of vegetable oils for biodiesel production. This has resulted in the decline in international crude palm oil prices denominated in US dollars in 2014."

Prospects for this year are not likely to get much better with prices of commodities like crude palm oil and sugar remaining soft.

"Competition from other CPO producers as well as competing products like soybean will be intense, given the added impetus of lower demand for biodiesel with the fossil fuel price drop," Indofood said.

Indofood Agri shares ended 1.4% lower at 70.5 cents yesterday.