Falling prices, sales cut First Resources Q1 earnings

Singapore

PALM oil player First Resources' net profit for the first quarter ended March 31, 2015 fell below consensus expectations, diving 38.5 per cent to US$27.7 million, as profit from operations fell nearly 24 per cent to US$45.7 million largely due to lower average selling prices and sales volumes of palm-based products.

Revenues for the quarter fell 45.9 per cent to US$96.3 million, on the back of lower average selling prices and sales volumes. The overall decline in sales volumes was mainly due to lower purchases of palm oil products, a net build-up in inventory, as well as slowing down of processing activities at the group's refinery, fractionation and biodiesel plants.