First Resources' profits dropped 55.7% to US$12.29m

It blamed weaker palm oil prices despite higher sales volumes.

First Resources’ profits dropped 55.7% to US$12.29m in Q1 2019 from US$27.73m in the same period last year, its financial statement revealed.

“The lower net profit and profit from operations were mainly due to the effects of weaker palm oil prices, partially offset by higher sales volumes,” First Resources said.

Whilst sales rose 10.4% to US$149.61m thanks to higher sales volumes of palm based products, they were offset by lower average selling prices (ASP).

Sales volumes rose for crude palm oil by 1.6% to 184,800 tonnes but dipped for palm kernel by 5.2% to 44,522 tonnes.

Sales weren’t enough to cover the cost of sales which leapt 54.2% to US$111.37m due to the increase in purchases of palm oil products from third parties.

Meanwhile, selling and distribution expenses decreased by 27.2% to US$9.1m mainly due to lower export taxes.

No dividend has been declared for the current financial period.