First Resources' net profit tumbled 37.8% to US$107.9m in 2015

Blame it on low palm oil prices.

Agribusiness player First Resources reported a 37.8% drop in full-year net profit to US$107.9m, as overall sales continued to be dampened by low palm oil prices.

Average selling prices of palm-based products dropped during the year, the group said. First Resources reported a sharp decline in sales from its refinery and processing segment, which in turn led overall revenue to drop by 26.9% to US$219.1 million.

Despite its weak FY15 results, First Resources remained bullish on its prospects for 2016.

“Palm oil prices have started to recover on supply disruption concerns brought about by the prolonged dry weather experienced in 2015, which is expected to constrain industry-wide production in 2016. We believe the fundamentals of the palm oil industry remains favourable, underpinned by supportive demand from the Indonesian biodiesel mandate and continued consumption growth from emerging markets," said Ciliandra Fangiono, Executive Director and Chief Executive Officer of First Resources.