First Resources has reported an underlying net profit of US$61 million ($82 million) for the 3QFY2024 ended Sept 30, 19.3% higher y-o-y as sales and ebitda grew.
Sales during the 3QFY2024 increased by 2.3% y-o-y to US$253.9 million while ebitda surged by 27.8% y-o-y to US$105.9 million.
During the 9MFY2024, First Resources EB5 ’ underlying net profit increased by 27.6% y-o-y to US$151.6 million while sales grew by 2% y-o-y to US$711.1 million. Ebitda for the period rose by 26.9% y-o-y to US$273.7 million.
The better figures were attributed to higher average selling prices (ASPs) and improved processing margins.
In the third quarter, fresh fruit bunches (FFB) harvested rose by 2.4% y-o-y to 1.08 million tonnes with higher nucleus FFB harvested, offset by lower plasma FFB.
Crude palm oil (CPO) also grew by 0.2% y-o-y to 287,004 tonnes while palm kernel (PK) increased by 0.8% y-o-y to 62,567 tonnes.
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FFB yield stood at 5.6 tonnes per hectare, up from 5.4 in the 3QFY2023. CPO yield stood stable y-o-y at 1.2 tonnes per hectare. CPO extraction rate fell by 1 percentage point y-o-y to 21.8% while PK extraction rate dipped by 0.1 percentage points y-o-y to 4.8%.
During the reportable period, lower-than-expected palm oil production and increasing domestic consumption from Indonesia have tightened global supply-demand dynamics, pushing palm oil prices higher, explains First Resources in its Nov 14 statement.
“While export demand may be tempered by the relative price competitiveness of other competing edible oils, domestic consumption in Indonesia remains supported by the country’s biodiesel mandate, which is set to increase from B35 to B40 in 2025,” the statement reads. “Additionally, the change to Indonesia’s export levy structure introduced in September 2024 will help reduce the export tax burden for exporters.”
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As such, the group remains watchful of weather conditions, global economic factors, and geopolitical dynamics as it continues to navigate the evolving landscape.
Shares in First Resources closed at $1.55 on Nov 13.
