First Resources posts 43.6% higher H1 net profit of US$149.2 million

First Resource posted a 43.6 per cent rise in net profit to US$149.2 million for the first half of 2025 on Thursday (Aug 14).

This was up from US$103.9 million in the same period a year prior, the company said in a bourse filing.

Sales jumped 47.4 per cent to US$673.9 million from S$457.2 million, underpinned by higher average selling prices and stronger sales volumes, said the Indonesian oil producer.

The group’s basic earnings per share stood at US$0.0963, up from US$0.0667 in H1 2024.

First Resources also declared an interim dividend of S$0.045 per share, to be paid on Sep 10. This is up from S$0.035 in the previous corresponding period.

The rise in sales volume was supported by organic growth in the group’s production output, as well as the contribution from Austindo Nusantara Jaya(ANJ)since its acquisition was completed in May.

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The rise in sales prompted a 56.3 per cent rise in earnings before interest, taxes, depreciation and amortisation (Ebitda) to US$262.3 million.

Over the half year, the volume of fresh fruit bunches harvested jumped 23 per cent to two million tonnes from 1.6 million tonnes in the corresponding year-ago period, representing a 1.2 per cent rise in sales value. Crude palm oil production rose by 28.9 per cent year on year to 554,519 tonnes for a 42.8 per cent surge in sales value.

Higher output anticipated

Looking ahead, the group expects its production volume to rise, both due to seasonally higher output and the integration of ANJ.

The group said it remains in a healthy financial position even though gross borrowings have increased since the ANJ acquisition. Its gross gearing ratio stood at 0.58 times, with cash and bank balances of US$190.4 million.

“The improved competitiveness of palm oil prices relative to other vegetable oils, together with India’s reduction in import duties, may continue to encourage consuming countries to replenish inventories ahead of upcoming festivities,” said First Resources CEO Ciliandra Fangiono.

He added: “Combined with Indonesia’s local biodiesel mandate, these factors are expected to support palm oil demand and consumption, even as Indonesian exporters contend with higher export levies following the change in levy structure in May 2025.”

Shares of First Resources closed flat at S$1.64 on Wednesday.