First Resources reports lower Q3 net profit

PALM oil producer First Resources saw an 11 per cent slide year on year in net profit for Q3 to US$31.91 million, impacted partly by lower average selling prices.

Revenue was 9.3 per cent lower at US$137.45 million due to lower average selling prices and sales volumes.

Earnings per share fell from 2.26 US cents to 2.01 US cents.

"The industry's weaker-than-expected output growth, restocking by importing countries and palm oil's attractive relative pricing against other edible oils are expected to remain supportive of prices in the near term," the group said. "In the longer term, the fundamentals of the palm oil industry remains favourable, underpinned by expected consumption growth from importing countries, biofuel demand and the eventual slowdown in supply growth from the sharply reduced pace of new plantings in recent years."