First Resources profit down 11.3% to $46.28m in Q3

Production grew at a slower pace this quarter.

First Resources profit decreased by 11.3% YoY to $46.28m (US$34m) in Q3 due to slower production and decreased output growth.

According to RHB Research, lower unit costs and a still strong output growth buffered its earnings despite slow production. Fresh fruits bunches (FFB) harvested increased by 20.9% YoY and crude palm oil production (CPO) volumes rose by 5.8% YoY due to seasonality of the peak output period.

Recovery from El Nido effects and overall increase in mature hecterage also softened the impact of slow production levels.

“The industry’s weaker-than-expected output growth, restocking by importing countries and palm oil’s attractive relative pricing against other edible oils are expected to remain supportive of prices in the near term,” the company said in its financial statement.