First Resources' production to slow down in Q2

It will ease before rebounding in 2H17 on the back of seasonality.

Agriplayer First Resources expects its production to slow down in the second quarter of the current year after a 44% growth in fresh fruit bunch (FFB) output recorded in Q1.

According to DBS, the group expects production to ease in the coming quarter before rebounding in 2H17 on seasonality.

"The group is reiterating its 15% FFB production growth guidance for the year. We maintain own FFB production target of 2.741m MT – representing a 16% YoY increase," he said.

Meanwhile, as part of the government’s biodiesel programme, the group had been allocated to deliver 38,360kl of biodiesel from May through October 2017 – down from 61,738kl in the November 2016 – April 2017 allocation revision. The total biodiesel allocation is cut by around 10% on the back of the ongoing rectification of procedures.