FIRST Resources’ net profit for the third quarter ended September rose 19.3 per cent to US$61 million, from US$51.1 million in the previous corresponding period.
Sales were up 2.3 per cent at US$253.9 million for the quarter, while earnings before interest, taxes, depreciation and amortisation increased 27.8 per cent on the year to US$105.9 million.
This brings the nine-month net profit to US$151.6 million, up 27.6 per cent from US$118.8 million in the same period last year. Sales for the nine-month period were up 2 per cent on the year to US$711.1 million.
On Thursday (Nov 14), the group said that the better financial performance came amid higher average selling prices, as well as improved processing margins.
“Lower-than-expected palm oil production and increasing domestic consumption from Indonesia have tightened global supply-demand dynamics, pushing palm oil prices higher,” said First Resources.
For the third quarter, its crude palm oil production inched up 0.2 per cent to 287,004 tonnes and palm kernel production grew 0.8 per cent to 62,567 tonnes.
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First Resources also harvested 2.4 per cent more fresh fruit bunches in Q3 – 1.1 million tonnes.
For the nine-month period, crude palm oil production improved 3.5 per cent to 717,250 tonnes, and palm kernel production rose 3.9 per cent to 156,169 tonnes. Fresh fruit bunches harvested were up 4.5 per cent to 2.7 million tonnes.
The group noted that Indonesia’s biodiesel mandate, which is set to increase from B35 to B40 next year, is expected to drive domestic demand and consumption.
Additionally, changes to Indonesia’s export levy structure in September this year will also reduce the export tax burden for exporters, said First Resources.
The group remains cautious about weather conditions, global economic factors and geopolitical dynamics.
As at Sep 30, attributable equity increased 6.7 per cent to US$1.39 billion, from US$1.3 billion as at Dec 31. This was mainly due to profits generated during the nine-month period, partially offset by dividends paid to shareholders during the period.
The group also highlighted a healthy financial position with a gross gearing ratio of 0.19 times, as well as cash and bank balances of US$147.9 million as at Sep 30.
Shares of First Resources closed 3.1 per cent or S$0.05 lower at S$1.55 on Wednesday.
