First Resources net profit down 16.7% amidst volatile palm oil prices

First Resources’ reported a net profit of $32.6m for the first half of the year.

First Resources logged a net profit of $32.6m for the first half of the year, 16.7% short of the $39.1m recorded for the same period last year.

“Palm oil prices had been volatile during the first half of the year, driven by price movements in the rest of the vegetable oil complex and expectations of impending changes to the export levy structure in Indonesia,” said First Resources CEO Ciliandra Fangiono in a press statement.

Indonesia reduced its export levies for palm oil products as of 2 July, which would reduce the export tax for the second half of the year.

First Resources expects its output growth to continue for the rest of the year as it enters the production upcycle that typically happens in the latter half.

“Looking ahead, palm’s attractive relative pricing against competing for edible oils is expected to lend support to prices whilst the lower export levy in Indonesia will help to reduce the export tax burden for exporters in the second half of the year,” Fangiono said.