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10 Quick Points Investors Should Know About First Resources Ltd’s 2017 Results

In late February, First Resources Ltd (SGX: EB5) released its full year results for 2017. As a brief introduction, First Resources is an integrated palm oil producer. It manages over 210,000 hectares of oil palm plantations across the Riau, East Kalimantan and West Kalimantan provinces of Indonesia. The company has three business segments, namely crude palm oil (CPO), palm kernel, and refinery and processing.

Here are 10 quick points on First Resources’ 2017 performance:

1. Revenue was up by 12.5% year-on-year to 647.0 million, driven by higher price and higher volume.

2. Operating profit for the full year was up by 9.3% year-on-year to US$226.9 million, driven by higher sales revenue.

3. Net profit attributable to owners rose 9.8% year-on-year to US$ 137.7 million.

4. EBITDA (earnings before interest, tax, depreciation and amortization) for 2017 increased by 16.2% as compared to the same period last year to US$ 292.1 million.

5. Gross margin improved from 46.5% in 2016 to 47.4% in 2017. Similarly, EBITDA margin improved from 7% in 2016 to 45.2% in 2017.

6. For 2017, net cash generated from operating activities was US$231.7 million, an increase compared to the US$186.6 million generated in 2016.

7. Over to its balance sheet, net borrowings increased from US$189.6 million at the end of 2016 to US$217.4 million at the end of 2017. First Resources had net gearing of 0.21, relatively similar to the net gearing of 0.20 in 2016.

8. For its business segments, plantation and palm oil mills revenue was up 10.8% year-on-year to US$524.9 million while refinery and processing revenue was up by 20.4% year-on-year to US$ 600.3 million.

9. Unit cash cost of production per tonne of nucleus crude palm oil produced (before selling and distribution expenses and general and administrative expenses) was up from US$215 in 2016 to US$217 in 2017.

10. To round it off, First Resources proposed a special dividend of 3.40 Singapore cents per share, in addition to a final dividend of 2.15 Singapore cents per share. That brings the total dividend per share to 5.55 cents for 2017. 

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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.