First Resources profits up 185.7% to $95m in Q2

Fruit produce grew by 27.3% in H1.

First Resources (FR) enjoys a bountiful harvest after its profits went up 185.7% to $95m (US$69.9m).

RHB said for the half-year, fresh fruit bunches (FFB) output grew 27.3%, which was better than expected.

FFB output 13.7% also went up in Q2. However, output fell 13% QoQ, due to seasonality, easing from the peak output period in 4Q16.

"The strong output growth is better than management’s guidance of a 15% YoY growth and our projected 15% YoY rise. We maintain our FFB growth forecast for now," RHB Singapore Research said.

Crude palm oil (CPO) price rose by 15.9% in YoY for H1. The CPO price of $844.2 (USD621) per tonne was 0.1% higher YoY in Q2.

However, its downstream margins division continues to be in the black, no thanks to higher selling prices, higher by 3.8% YoY, and despite the high feedstock costs.

"It is possible downstream margins could stay in the positive territory going forward, given the rate of decline of PK and PKO prices recently," RHB said.

FR declared an interim net distribution per share (DPS) of 1.25 cents in Q2.