First Resources' Q2 profit down 11.4%

PALM oil producer First Resources on Friday posted an 11.4 per cent slide in net profit year on year for the second quarter to U$23.15 million.

Sales for the three months ended June 30 were marginally lower by 0.6 per cent to U$134.61 million, while earnings per share fell from 1.65 US cents to 1.46 US cents.

For the six-month period, the group recorded a net profit of US$71.63 million, up 127.5 per cent, driven by higher palm oil prices and the group's improved production volumes and yields, it said. Sales grew 32.3 per cent to US$328.75 million, driven by a combination of higher average selling prices and sales volumes.

First Resources is paying out an interim dividend of 1.25 Singapore cents on Sept 12, up from 0.625 Singapore cent previously.

"Given its attractive relative pricing against the other edible oils and continued low inventories in both producing and importing countries, demand for palm oil should remain stable," the company said.

"In the longer term, the Indonesian biodiesel mandate and underlying demand growth from emerging markets will continue to underpin the positive outlook of the palm oil industry," it added.