1 Slide To Give Investors A Quick Overview Of First Resources Ltd’s Latest Operational Metrics

First Resources Ltd (SGX: EB5) is an integrated palm oil producer, managing more than 200,000 hectares of oil palm plantations across the Riau, East Kalimantan and West Kalimantan provinces of Indonesia.

The company recently released its 2017 fourth quarter earnings (Q4 FY2017). In this article, I will look at one slide from the latest earnings presentation to give investors a quick overview of the firm’s operational performances.

Source: First Resources Q4 FY2017 Results Presentation

Production wise, we can see that FY2017’s FFB (fresh fruit bunches) harvested grew 14.1% year-on-year. This resulted in a higher production of CPO (crude palm oil) and PK (palm kernel) in FY2017 of 10.6% and 15.1% respectively, as compared to FY2016.

In terms of plantation efficiency, FY2017’s FFB yield improved from 16.8 tonnes/hectare (tonnes/ha) to 17.5 tonnes/ha. Similarly, CPO yield grew from 3.8 tonnes/ha in FY2016 to 3.9 tonnes/ha in FY2017.

With regards to manufacturing efficiency, we can see that FY2017’s CPO extraction rate (100% extraction rate means one tonne of CPO is produced from one tonne of FFB) declined year-on-year from 22.5% to 22.2%.

In sum, CPO production in FY2017 was higher mainly driven by higher FFB yield, offset slightly by lower extraction rates.

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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.