[SINGAPORE] First Resources’ net profit grew 74.9 per cent to US$63.1 million for the first quarter ended March 2025, from US$36.1 million in the same period a year prior, the company said in a bourse filing on Thursday (May 15).
The Indonesian palm oil producer attributed its improved financial performance to higher average selling prices and an increase in overall sales volume. The rise in sales volume was supported by higher production levels, partially offset by a net inventory build-up of 18,000 tonnes during the quarter, compared to a drawdown of 28,000 tonnes in the same year-ago period.
Sales increased 33 per cent to US$280 million this quarter, prompting a 54 per cent rise in earnings before interest, taxes, depreciation and amortisation to US$107 million.
Equity attributable to owners of the company rose slightly by 1.3 per cent to nearly US$1.4 billion as at Mar 31, from US$1.38 billion as at Dec 31, 2024, mainly due to the profits generated during the quarter, partially offset by the foreign currency translation losses arising from the depreciation of Indonesian rupiah against US dollar.
Over the quarter, the volume of fresh fruit bunches harvested jumped 12.4 per cent to 874,799 tonnes as compared to 778,618 tonnes in the same year-ago period. Crude palm oil production also rose by 14.9 per cent year on year to 231,861 tonnes.
Strengthened by new plantation assets
Following the completion of the acquisition of Austindo Nusantara Jaya, Tbk on May 6, the group expects its production volume for the remainder of the year to be further bolstered by the contribution from the newly acquired plantation assets.
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Earlier on Mar 18, it had entered a conditional shares purchase agreement to buy 3.1 billion shares or 91.2 per cent of the issued and paid-up capital of Austindo Nusantara Jaya for US$329.8 million.
The group’s gross gearing ratio stood at 0.18 times, while its cash and bank balances were at US$122.3 million.
In addition, it also had undrawn committed credit facilities of about US$850 million as at the end of the quarter, to be used for funding the acquisition of Austindo Nusantara Jaya, and other general corporate purposes of the group.
First Resources acknowledges that current geopolitical trade tensions have introduced “fresh uncertainty” into global edible oil markets.
“Amidst these developments, the company will remain vigilant of changes in the macroeconomic environment, while continuing to leverage its improving operational strength, ongoing replanting programme and the integration of acquired assets into its operations,” said the group.
As at 9 am, its shares were up 2.7 per cent or S$0.04 at S$1.50 on Thursday, after the results were released.
