Lang
[SINGAPORE] First Resources has announced a significant increase in its net profit, which surged by 57.4% to US$234.9 million for the first half of the year ended June 30. This robust performance was primarily attributed to expanded production volumes and enhanced processing margins.
The reported net profit for the period marks a substantial rise from US$149.2 million recorded in the corresponding period a year earlier. Sales revenue also saw a healthy increase, climbing 44.5% to US$973.6 million, up from US$673.9 million in the prior year. This revenue boost was partly supported by a full six-month contribution from Austindo Nusantara Jaya, an acquisition made in May 2024, compared to only two months of contributions in the year-ago period.
Earnings per share (EPS) for the group reached US$0.1517, an improvement from US$0.0963 reported previously. Alongside the strong earnings, First Resources declared an interim dividend of S$0.08 per share, scheduled for payout on September 10. This represents an increase from the S$0.045 per share distributed in the previous corresponding period.
Operational efficiencies and higher sales volumes contributed to a 31.3% rise in earnings before interest, taxes, depreciation, and amortisation (EBITDA), reaching US$344.4 million. Gross profit also expanded significantly, growing 45.7% to US$409.2 million. Excluding fair-value gains on biological assets, the underlying net profit for the year-on-year period was up 42.2% at US$216.2 million.
On the production front, the volume of fresh fruit bunches harvested saw a 10.2% jump, reaching 2.2 million tonnes from two million tonnes a year prior. Crude palm oil (CPO) production concurrently rose by 18.4% year-on-year, totaling 656,605 tonnes.
The company affirmed its healthy financial standing, reporting cash and bank balances of US$229.2 million as of June 30. Its gross gearing ratio improved to 0.53 times, down from 0.57 times as of December 31, 2023.
CEO Ciliandra Fangiono commented that new developments in Indonesia’s palm oil export framework during the second quarter initially introduced market uncertainty and price volatility. However, he noted that these uncertainties appear to have moderated as the implementation details became clearer. Looking ahead, Mr. Fangiono stated that the company would continue to monitor Middle East geopolitical tensions, Indonesia’s B50 biodiesel mandate, and evolving El Nino weather conditions for their potential impact on palm oil demand and pricing in the coming months.
Following the announcement of these results, shares of First Resources closed up 7.6%, or S$0.28, at S$3.95 on Friday.
Source: The Business Times