First Resources H1 net profit up 57.4% at US$234.9 million; declares S$0.08 dividend per share
[SINGAPORE] First Resources posted a 57.4 per cent rise in net profit to US$234.9 million for the first half ended Jun 30, driven by higher production volumes and improved processing margins.
This was up from US$149.2 million in the same period a year prior, the company said on Friday (Aug 14).
Sales revenue increased 44.5 per cent to US$973.6 million from US$673.9 million. This was bolstered by a full six-month contribution from PT Austindo Nusantara Jaya, which was acquired in May 2025, compared with just two months of contributions in the year-ago period.
The group’s earnings per share stood at US$0.1517, up from US$0.0963 in H1 2025.
First Resources declared an interim dividend of S$0.08 a share, to be paid on Sep 10, up from S$0.045 a share in the previous corresponding period.
The increase in sales volume prompted a 31.3 per cent rise in earnings before interest, taxes, depreciation and amortisation to US$344.4 million, while gross profit grew 45.7 per cent to US$409.2 million. Excluding fair value gains on biological assets, underlying net profit was up 42.2 per cent at US$216.2 million.
Over the half year, the volume of fresh fruit bunches harvested jumped 10.2 per cent to 2.2 million tonnes from two million tonnes in the corresponding year-ago period. Crude palm oil production rose 18.4 per cent year on year to 656,605 tonnes.
The group said it remains in a healthy financial position, with cash and bank balances of US$229.2 million as at Jun 30. Its gross gearing ratio stood at 0.53 times, down from 0.57 times as at Dec 31, 2025.
CEO Ciliandra Fangiono said new developments in Indonesia’s palm oil export framework in the second quarter contributed to market uncertainty and price volatility, but market uncertainties appear to have moderated as implementation details became clearer.
He added that Middle East geopolitical tensions, Indonesia’s B50 biodiesel mandate and developing El Nino weather conditions will be monitored for their impact on palm oil demand and pricing in the months ahead.
Shares of First Resources ended Thursday 0.8 per cent or S$0.03 lower at S$3.67.
