First Resources' net profit from operations down 6.8% on weak palm oil prices

Weaker palm oil prices dragged down performance at First Resources.
Weaker palm oil prices dragged down performance at First Resources. PHOTO: BLOOMBERG

SINGAPORE - Weaker palm oil prices dragged down performance at First Resources, which said net profit from operations for the second quarter fell 6.8 per cent from a year ago to US$47 million, even as sales rose.

Sales in the three months ended June 30 increased 5.9 per cent to US$118.8 million due to higher sales volumes of palm-based products, partially offset by the effects of lower average selling prices.

Chief executive Ciliandra Fangiono said that despite a more difficult operating environment, the firm remains convinced of the viability of the palm oil business.

"Our financial position stays strong and our healthy half-yearly performance attests to our efforts to be an efficient and productive producer."

For the first six months of the year, First Resources recorded a net profit from operations of US$92.7 million, down 16.1 per cent from a year ago.

Sales decreased by 25.9 per cent year-on-year to US$215.1 million in the first half of the year.

Earnings per share for the second quarter was 1.81 US cents, up from 1.65 US cents a year ago.

Net asset value per share stood at 64 US cents at the end of June, down from 67 US cents six months before.

First Resources has declared an interim dividend of 1.25 Singapore cents a share.