First Resources has announced a 58% y-o-y increase in its underlying profit to US$239.6 ($311.8) million for the nine months ending Sept 30. In a business update, the Indonesia-based palm oil company says overall revenue in the same period was up by nearly 60% to nearly US$1.14 billion from US$711.1 million. EBITDA rose 55.7% to US$426 million.
The growth was attributed to sustained palm oil prices and higher production volumes, which were backed by organic growth in yields and contribution from recently acquired PT Austindo Nusantara Jaya, Tbk (ANJ).
Excluding the ANJ acquisition, First Resources highlighted that fresh fruit bunches harvest and crude palm oil production would have increased by 8.1% and 12.6% respectively.
As at Sept 30, the company held cash and bank balances of US$328.3 million and gross gearing ratio stood at 0.63. It still has undrawn committed credit facilities of US$175.9 million available.
First Resources had earlier announced the divestment of two indirect subsidiaries of ANJ as part of strategic plans to streamline its plantation footprint and exit the oil palm plantation business in West Papua, Indonesia. The divestment is expected to reduce the company’s net debt by approximately US$80 million.
The counter closed at $2.08 on Nov 13, down 1.42% for the day but up 42.47% year to date.
