FIRST Resources’ net profit grew 86.6 per cent to US$36.1 million for the first quarter ended March 2024, from US$19.3 million a year prior.
On Wednesday (May 15), the Indonesian palm oil producer attributed its improved financial performance to greater overall sales volume and reduced export taxes despite lower average selling prices.
Sales increased 6.2 per cent to US$210.5 million, prompting a 26 per cent rise in earnings before interest, taxes, depreciation and amortisation to US$69.4 million.
First Resources said the sales volume growth came mainly from a net inventory drawdown of 28,000 tonnes during the quarter, alongside higher production volumes and yields.
Equity attributable to owners of the company however fell 1.1 per cent to slightly under US$1.3 billion, mainly due to foreign currency translation losses arising from depreciation of the Indonesian rupiah against the US dollar.
Over the quarter, fresh fruit bunches (FFB) harvested grew 6.4 per cent to 78,618 tonnes, versus 731,672 tonnes in Q1 FY2023. FFB yield strengthened to 3.9 tonnes per hectare, from 3.7 tonnes per hectare in the year prior.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Crude palm oil production for the quarter grew 8.9 per cent on the year to 201,754 tonnes.
First Resources noted that as Q1 was a seasonally lower production period, falling stocks in producing countries along with increased festive demand leading up to Ramadan resulted in higher palm oil prices.
“With expectations of a seasonal uptick in production, palm oil prices have since moderated and improved its competitiveness against other vegetable oils,” added the company.
The group expects consumption demand and prices of global vegetable oil to be supported by an ongoing push towards higher biodiesel blends by countries.
With a gross gearing ratio of 0.23 times and cash and bank balances of US$261.4 million as at end-March 2024, First Resources said its financial position “remains strong”.
The group also said it had available undrawn committed unsecured credit facilities of US$35 million which may be utilised for general corporate purposes.
Shares of First Resources : EB5 0% ended Tuesday flat at S$1.38.
