First Resources Limited Posts Significant Gains in Q3 and 9M2024 Performance
First Resources Limited has reported a robust financial performance for the third quarter and the first nine months of 2024. The company achieved notable growth across key financial metrics, driven by higher average selling prices and improved processing margins. This news is likely to draw significant attention from shareholders and investors, potentially impacting the company’s share values.
Key Financial Highlights
- Sales: Increased by 2.0% to US\$711.1 million for 9M2024 and by 2.3% to US\$253.9 million for 3Q2024.
- EBITDA: Rose by 26.9% to US\$273.7 million for 9M2024 and by 27.8% to US\$105.9 million for 3Q2024.
- Underlying Net Profit: Grew by 27.6% to US\$151.6 million for 9M2024 and by 19.3% to US\$61.0 million for 3Q2024.
- Equity: Increased by 6.7% to US\$1,391.2 million as of 30 September 2024, compared to US\$1,303.4 million as of 31 December 2023.
Production Highlights
First Resources Limited also reported a steady increase in production metrics:
- FFB Harvested: 2,731,044 tonnes for 9M2024, up by 4.5% from 9M2023.
- Crude Palm Oil (CPO): 717,250 tonnes for 9M2024, an increase of 3.5% from 9M2023.
- Palm Kernel (PK): 156,169 tonnes for 9M2024, up by 3.9% from 9M2023.
Market and Operational Insights
The company’s improved financial performance is attributed to higher average selling prices and better processing margins. Additionally, lower-than-expected palm oil production and increasing domestic consumption in Indonesia have tightened global supply-demand dynamics, pushing palm oil prices higher.
Indonesia’s biodiesel mandate is set to increase from B35 to B40 in 2025, further supporting domestic consumption. The recent change in Indonesia’s export levy structure, introduced in September 2024, will help reduce the export tax burden for exporters. These factors are likely to positively influence the company’s future performance.
Financial Position
As of 30 September 2024, First Resources Limited maintains a healthy financial position with a gross gearing ratio of 0.19 times and cash and bank balances of US\$147.9 million. The company also has undrawn committed unsecured credit facilities of US\$290.0 million, available for refinancing existing indebtedness and general corporate purposes.
About First Resources Limited
Established in 1992 and listed on the Singapore Exchange since 2007, First Resources Limited is a leading palm oil producer managing over 200,000 hectares of oil palm plantations in Indonesia. The company’s core activities include cultivating oil palms, harvesting fresh fruit bunches, and milling them into crude palm oil and palm kernel. The Group also processes palm-based products through its refinery, fractionation, biodiesel, and kernel crushing plants.
First Resources is committed to sustainable palm oil production, focusing on maximizing output while minimizing environmental and social impacts. The company continually strengthens its sustainability framework by benchmarking against industry standards and best practices.
For further information, please contact:
Investor Relations
Email: investor@first-resources.com
First Resources Limited
7 Temasek Boulevard, #24-01 Suntec Tower One, Singapore 038987
Tel: +65 6602 0200
Fax: +65 6333 6711
Website: www.first-resources.com
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform their own research and consider their financial situation before making investment decisions.
