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First Resources posts 41 per cent decrease in Q4 net profit

OIL palm-focused investment holding company, First Resources saw its fourth-quarter net profit plunge 41.1 per cent to US$34.16 million as an increase in cost of sales outweighed an increase in turnover.

Earnings per share for Q4 was 2.16 US cents, down from 3.66 US cents for the year-ago period.

Revenue for the quarter ended Dec 31 rose 3.2 per cent to US$180.79 million but this was offset by a 19 per cent increase in cost of sales to US$94.79 million.

The firm said that its cost of sales have risen mainly due to higher operating costs from its increased mature plantation hectarage.

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Not helping was a 24.8 per cent jump in selling and distribution (S&D) costs to S$14.77 million.

First Resources said that its fourth-quarter net profit was negatively impacted by lower average selling prices.

Full-year net profit was 9.8 per cent higher at S$137.7 million.

The firm noted that excluding the effect of losses arising from changes in fair value of biological assets, its underlying net profit would have decreased by 25.3 per cent for Q4 and increased by 20.8 per cent for the full year.

For Q4 and FY2017, its losses arising from changes in fair value of biological assets amounted to US$2.38 million compared to gains of US$13.18 million in the corresponding periods last year.

The board of directors proposed a final dividend of 2.15 Singapore cents per share.