With the resumption in palm oil exports following the government’s continued suspension of the export levy and relaxation of the Domestic Market Obligation (DMO) policy post the lifting of the export ban on May 23, inventory levels in Indonesia have started normalising to less burdensome levels.
First Resources recorded a 23.4% increase in sales to US$897.1 million ($1.2 billion) for the 9MFY2022 ended September on the back of stronger palm oil prices, with Ebitda and underlying net profit surging by 91.2% and 206.0% to US$390.7 million and US$253.8 million respectively.
For the 3QFY2022 period, the group managed to achieve an improvement in average selling prices amidst the challenging market conditions to record a 15.2% uptick in sales. Further aided by Indonesia’s export levy suspension from July 15, the group’s Ebitda and underlying net profit increased by 47.5% and 120.1% respectively, as compared to the same period last year.
