It attributes the better financial performance to higher production volumes and improved processing margins
FIRST Resources announced on Wednesday (Aug 14) a net profit of US$103.9 million for the first half of FY2024, up 45.4 per cent from US$71.5 million in the same period last year.
Half-year revenue rose 1.9 per cent to US$457.2 million, from US$448.8 million in H1 FY2023.
The group attributed the better financial performance to higher production volumes and improved processing margins.
Crude palm oil production volumes increased by 5.8 per cent to 430,246 tonnes for the half year, from 406,648 tonnes in the year-ago period.
The company’s chief executive officer Ciliandra Fangiono said: “Palm oil prices have been restrained by expectations of a seasonal production upswing in the second half of the year, while being supported by low inventories.”
Export demand could face pressure from competing oils such as soya, while Indonesia’s biodiesel mandate and domestic market obligation policy are expected to sustain strong domestic demand and consumption, he added.
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First Resources also harvested about 1.6 million tonnes of fresh fruit bunches in H1 2024, a 5.9 per cent year-on-year increase from 1.6 million tonnes.
Underlying net profit increased 33.8 per cent year on year to US$90.6 million, while earnings before interest, taxes, depreciation and amortisation (Ebitda) was up 26.3 per cent at US$167.8 million.
The group’s earnings per share for the half year rose to US$0.0667, from US$0.0456 in H1 FY2023.
It declared an interim dividend of S$0.035 per share for the half-year period, higher than the dividend per share of S$0.025 in the previous year.
Shares of the mainboard-listed company closed 1.4 per cent or S$0.02 lower at S$1.38 on Tuesday.
