First Resources' Q4 profit down 67% on lower crude palm oil prices

INDONESIAN palm oil producer First Resources reported a net profit of US$19.8 million for its fourth quarter ended Dec 31, 2015, down 67 per cent from US$59.2 million a year ago.

Revenue fell 26 per cent to US$130.9 million from US$176.7 million a year ago. This was mainly due to lower average selling prices of palm based products, partially offset by higher sales volumes from the refinery and processing segment.

A final dividend of 1.25 Singapore cents was declared, down from 2.3 cents a year ago.

Total dividend for the year was 2.5 cents, down from 3.55 cents a year ago.

The company said that while palm oil prices have been pressured by weakness in crude oil and other edible oil prices, supply disruption concerns due to dry weather in 2015 have caused palm oil prices to recover.

"The fundamentals of the palm oil industry remain favourable, underpinned by supportive demand from the Indonesian biodiesel mandate and continued consumption growth from emerging markets," it said.

The counter fell 2.9 per cent or 5.5 cents to S$1.84 as of 11.54am, after results were out.