The group had noted in its results release that CPO prices in the near- to mid-term are expected to be influenced by the geopolitical situation in the Black Sea, as well as the anticipated weather impact of El Nino on the output of palm and other competing oils. Nonetheless, the fundamentals of the palm oil industry remain supported by Indonesia’s B35 biodiesel mandate and Domestic Market Obligation (DMO) policy, which are expected to continue driving domestic demand and consumption, limiting the country’s palm oil export volumes.
Analysts have somewhat differing views on agriculture company First Resources (FR) (SGX:EB5
) following its latest 1HFY2023 ended June results release.
During the period, earnings declined by 44.1% y-o-y to US$71.5 million, while sales were 16.1% lower y-o-y at US$448.8 million. The lacklustre results, according to the group, were a result of the moderation of crude palm oil (CPO) prices in 1H2023, as compared to the record high CPO prices seen in 1H2022.
