First Resources Q3 profit surges 43.5% to US$87.5 million

[SINGAPORE] Palm oil producer First Resources posted a 43.5 per cent increase in net profit for the third quarter, the company said on Friday (Nov 14).

The US$87.5 million figure surpassed the US$61 million in the previous corresponding period, which was attributed to higher average selling prices and sales volumes.

Sales surged 82.5 per cent to US$463.3 million for the quarter, while earnings before interest, taxes, depreciation and amortisation rose 54.7 per cent on the year to US$163.8 million.

The group said expectations of “subdued global palm oil production growth” and the potential expansion of Indonesia’s biodiesel mandate may tighten the supply-demand outlook and lend support to palm oil prices.

This may occur even as US tariff developments and broader macroeconomic conditions continue to influence market prices of palm and other vegetable oils.

Strong financials

The net profit for the nine months ended Sep 30 was US$239.6 million, up 58 per cent from US$151.6 million in the year-ago period.

Sales for the nine-month period rose 59.9 per cent on the year to US$1.1 billion.

The increase in production and sales volumes in the first nine months was driven by “organic growth” in production output, as well as the completion of Austindo Nusantara Jaya (ANJ)’s acquisition in May 2025.

Excluding the effects of the ANJ acquisition, the group’s fresh fruit bunches harvested would have risen 8.1 per cent, and crude palm oil production would have grown 12.6 per cent.

SEE ALSO

In Q3, First Resources’ crude palm oil production rose 26.3 per cent to about 362,500 tonnes, and palm kernel production grew 28.1 per cent to about 80,100 tonnes.

The group also harvested 20.4 per cent more fresh fruit bunches in Q3, at 1.3 million tonnes.

For the nine-month period, crude palm oil production improved 27.8 per cent to nearly 917,000 tonnes, and palm kernel production rose 29.5 per cent to about 202,300 tonnes.

Fresh fruit bunches harvested increased 21.9 per cent at 3.3 million tonnes for the same period.

As at Sep 30, attributable equity increased 2.3 per cent to US$1.41 billion, up from US$1.38 billion as at Dec 31. This was mainly due to profits generated during the nine-month period.

However, it was partially offset by dividends paid to shareholders during the period, and by foreign currency translation losses arising from the depreciation of the Indonesian rupiah against the US dollar.

Gearing remained at a 0.63 ratio, with cash and bank balances of US$328.3 million as at Sep 30.

First Resources last month disposed of two subsidiaries in Indonesia as it exited the oil-palm plantation business in the country’s West Papua province. The divestment is expected to reduce net debt by approximately US$80 million, said the group.

Shares of First Resources closed 1.4 per cent or S$0.03 lower at S$2.08 on Thursday.