First Resources' fresh fruit bunch output shrinks 13%
But the agri-group expects a pickup in the following quarter.
Agribusiness First Resources saw a decline in its fresh fruit bunch (FFB) output in the past quarter.
According to CIMB, this is in line with the group's guidance during its Q1 results briefing.
"The group expects 3Q17 production to be stronger qoq but indicated that the mom improvement in its July production, was not as strong compared to the Malaysian estates," analyst Ivy Ng Lee Fang said.
For 1H17, the group derived 85% of its output from its Riau estates and 15% from Kalimantan.
Meanwhile, the group maintained its guidance for cash costs of production for nucleus crude palm oil, at US$200-220 per tonne in 2017, against the US$215 per tonne achieved in 2016.
"The group indicated that it has applied 55% of its total fertilizer requirements in 1H17," the analyst said.
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