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3 Things Investors Should Know About First Resources Ltd Now

First Resources Ltd (SGX: EB5) is a palm oil company in Singapore’s market. It currently manages over 200,000 hectares of oil palm plantations in Indonesia.

But, the company does more than just grow the palm fruit. It also produces crude palm oil and then further refines and processes the oil.

Here are three things about First Resources that investors may want to know:

1. Latest quarterly results

First Resources’ latest quarterly results (for the first-quarter of 2016) was released just last week. The company experienced a 17.5% year-on-year jump in revenue to US$113 million for the quarter. But, its profit had collapsed by 78% to US$5.3 million.

The bottom-line had been affected by lower crude palm oil prices.

2. Changes to crude palm oil prices

There are both reasons for optimism and worry about the near-term future for First Resources. One of the factors that can significantly affect the business performance of a palm oil company is the price of crude palm oil. As we had seen earlier with First Resources, lower crude palm oil prices can have painful impacts on the bottom-line.

Crude palm oil prices have started rising in recent weeks. First Resources attributes the recovery to “concerns over the impact from prolonged dry weather last year, which is suppressing industry-wide production.” In the latest earnings release, the company said that “recent higher prices [for palm oil] is expected to improve our financial performance as compared to 1Q 2016.”

But, the firm also warned that it “expects its production to continue to be impacted by the lagged effects of the dry weather in 2015, such that overall production in 2016 is expected to be lower than the preceding year.”

3. Dividend history

First Resources was listed in late 2007. Starting from 2008, the company has been dishing out an annual dividend without fail. But, that dividend has fluctuated, coming in between US$0.0155 and S$0.0357 per share.

At First Resources’ current share price of $1.655, the stock has a 1.5% dividend yield thanks to its 2015 dividend of S$0.025 per share.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.