FIRST Resources on Friday (Feb 28) reported a 91.9 per cent surge in net profit to US$141.8 million for the second half ended Dec 31, from US$73.9 million in the previous corresponding period.
This came as profit from operations rose 90.3 per cent to US$193.5 million from US$101.7 million, on the back of “record production and higher average selling prices”, said the palm oil producer.
Earnings per share stood at US$0.0916 for the half-year period, up from US$0.0472 the previous year.
Sales rose 9.4 per cent to US$581.5 million from US$531.8 million, driven by stronger palm oil prices.
A final dividend of S$0.063 per share was proposed, up from S$0.037 per share in the year-ago period. The dividend will be paid on May 15, following the record date of May 7.
This brings the full-year dividend to S$0.098 per share, higher than the prior year’s S$0.062 per share, and represents 50 per cent of the group’s underlying net profit.
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For the full year, net profit rose 69.1 per cent to US$245.8 million from US$145.4 million. Profit from operations was up 70.2 per cent at US$337 million from US$198.1 million.
Sales for the year were up 5.9 per cent to US$1.04 billion from US$980.6 million, bolstered by stronger market prices.
On the production front, the group recorded a new high of 3.8 million tonnes in fresh fruit bunches, with a strengthened yield of 19.5 tonnes per hectare as compared to FY2023.
Crude palm oil (CPO) production surpassed one million tonnes during the year, with CPO yield improving to 4.3 tonnes per hectare in FY2024 from 4.2 tonnes per hectare the year before.
The group highlighted its “robust financial position” with gross gearing ratio at 0.18 times, as well as cash and bank balances of US$157.2 million as at end-December.
Looking ahead, Ciliandra Fangiono, chief executive of First Resources, said: “Indonesia’s expansion of its biodiesel mandate from B35 to B40 in 2025 is expected to tighten global palm oil supplies and support prices.”
The policy calls for a mandatory mix of palm oil in biodiesel.
“At the macro level, the group will continue to be vigilant of developments in the regulatory and macroeconomic environment, including geopolitical trade tensions and their potential impact on the market prices of palm and other competing oils,” he said.
Shares of First Resources closed at S$1.43 on Thursday.
