Palm oil producer First Resources' Q3 revenue rises 24.9% on higher output
Overview
Singapore-listed palm oil producer's Q3 revenue rose 24.9% yr/yr, driven by higher sales volumes
Underlying net profit for Q3 increased 40.1% yr/yr
Company says higher output and inventory drawdown boosted sales
Outlook
Company expects palm oil demand to be supported by Indonesia's biodiesel programme and B50 mandate
Elevated crude oil prices expected to support biodiesel economics and CPO demand
First Resources says El Nino impact on palm oil production likely in 2027 due to lag effect
Result Drivers
HIGHER PRODUCTION OUTPUT - Co said increased production output contributed to higher sales volumes
INVENTORY DRAWDOWN - Net inventory drawdown of 28,000 tonnes in 9M2026 supported higher sales volumes
THIRD-PARTY PURCHASES - Increased purchases of FFB and palm oil products from third parties supported sales
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Revenue | $1.55 bln | ||
9M Adjusted Net Income | $338.9 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for First Resources Ltd is S$5.15, about 84.4% above its November 12 closing price of S$2.79
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Nov 10 - Canada's Freehold Royalties Q3 revenue surges
Nov 11 - Argentina's Bioceres Crop Solutions Q1 revenue falls on delayed soybean sales
Nov 10 - Austevoll Seafood Q3 revenue falls on early closure of Peru's fishing season due to warm seawater
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)