SINGAPORE (May 11): First Resources saw earnings in the first quarter ended March surge by 807.0% to US$48.5 million ($68.4 million), from US$5.3 million a year ago.
This was mainly driven by higher palm oil prices in 1Q, as well as improved production volumes and yields.
Revenue grew by 71.6% to US$194.1 million in 1Q, from US$113.1 million in the corresponding quarter last year.
This was mainly due to a combination of higher average selling prices and increased sales volumes.
The increase in sales revenue outpaced cost of sales, which rose by 30.4%. As a result, gross profit grew 164.3% to US$92.0 million.
Gross profit margin improved by 16.6 percentage points to 47.4% in 1Q17, mainly due to the higher average selling prices.
General and administrative expenses increased by 9.9% to US$7.0 million in 1Q17, mainly due to higher accruals for employee-related costs.
Cash and cash equivalents stood at US$158.9 million as at March 31, 2017.
Looking ahead, First Resources says palm oil prices have since moderated, due to improving supply prospects for palm oil and other edible oils as well as muted demand from importing countries such as India and China.
However, it adds that the longer term fundamentals of the industry remain positive, amid the short term volatility in palm oil prices.
Shares of First Resources closed 5 cents higher at $1.96 on Thursday.
