It was hit by the effects of inventory build-up and lower average selling prices.
First Resources' profits for the first quarter of 2018 crashed 42.8% in a year from US$27.73m to US$48.48m. Revenue also plummeted 30.2% to US$135.56m.
According to its financial statement, profit from operations also fell 39.9% to US$43.33m due to the effects of inventory build-up and lower average selling prices.
Refinery and processing sales volume fell 20.4% to 200,729 tonnes. The increases in the sales volume of crude palm oil (CPO) and palm kernel (PK) at 10.3% and 15.4% were not enough to offset the decline.
Moreover, sales fell 30.2% to US$135.6m. The sales for PK and fresh fruit bunches (FFB) were down 3.2% to US$24.67m and 22.1% to $3.3m, respectively. CPO sales slightly grew 2.1% to US$107.01m.
Refinery and processing sales also fell 29.4% to US$128.43m, whilst inter-segment elimination jumped 4.6% to -US$127.86m.
"Driven by yield recovery and an increase in mature hectarage, the Group’s production volume continued to grow in the first quarter of 2018, with a seasonal upswing in production expected in the second half of the year," First Resources said.
"Whilst the overall improvement in industry production volumes this year is expected to impact palm oil prices, the recent rally in crude oil prices and China’s proposed import tariff on US soybeans may present some support to palm oil demand and prices," it added. "In addition, with the removal of European Union anti-dumping duties on several Indonesian biodiesel producers, including First Resources, as well as the supportive domestic biodiesel blending mandate in Indonesia, biodiesel demand is expected to stay healthy."
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