First Resources has reported earnings of US$73.6 million ($102.6 million) for the 1QFY2022 ended March, 8.4 times or 738.5% higher y-o-y than earnings of US$8.8 million for the 1QFY2021.
Sales increased by 54.1% y-o-y to US$303.5 million, while EBITDA surged 197.2% y-o-y to US$123.3 million.
The higher figures were attributable to the stronger average selling prices (ASPs) despite lower sales volumes.
Overall sales volumes were impacted by a net inventory build-up of 31,000 tonnes in 1QFY2022 as compared to a net drawdown of 4,000 tonnes in 1QFY2021, as well as a dip in production volumes and yields.
According to the group, the 1QFY2022 was “challenging” due to the changes in the policies made by the Indonesian government to address the shortage of domestic cooking oil and inflation.
That said, the group expects global edible oil prices in the near term to be supported due to the resultant curtailment of palm oil exports from Indonesia, together with the tightening of sunflower oil supplies from the Russia-Ukraine conflict despite the export ban from Indonesia.
See also: Trump wins Republican nomination, setting up rematch with Biden
That said, the ban is still expected to affect the group’s upcoming results, says First Resources in a statement on May 13.
As at end-March, First Resources reported cash and bank balances of US$436.8 million. Its gross gearing ratio for the period stood at 0.29 times.
Shares First Resources closed 2 cents lower or 0.94% down at $2.10 on May 12.
