Latest news with #FirstResources
Business Times
4 days ago
- Business
- Business Times
First Resources posts 43.6% higher H1 net profit of US$149.2 million
[SINGAPORE] First Resource posted a 43.6 per cent rise in net profit to US$149.2 million for the first half of 2025 on Thursday (Aug 14). This was up from US$103.9 million in the same period a year prior, the company said in a bourse filing. Sales jumped 47.4 per cent to US$673.9 million from S$457.2 million, underpinned by higher average selling prices and stronger sales volumes, said the Indonesian oil producer. The rise in sales volume was supported by organic growth in the group's production output, as well as the contribution from PT Austindo Nusantara Jaya since its acquisition was completed in May. The rise in sales prompted a 56.3 per cent rise in earnings before interest, taxes, depreciation and amortisation (Ebitda) to US$262.3 million. Equity attributable to owners of the company rose 3.3 per cent, to US$1.43 billion as at June 30, from US$1.38 billion as at Dec 31, 2024, mainly due to the profits generated during the half, partially offset by dividend payouts and foreign currency translation losses arising from the depreciation of the Indonesian rupiah against the US dollar. Over the quarter, the volume of fresh fruit bunches harvested jumped 23 per cent to two million tonnes from 1.6 million tonnes in the corresponding year-ago period, representing a 1.2 per cent rise in sales value. Crude palm oil production rose by 28.9 per cent year on year to 554,519 tonnes for a 42.8 per cent surge in sales value. Shares of First Resources closed flat at S$1.64 on Wednesday.
Business Times
06-08-2025
- Business
- Business Times
Jakarta's land crackdown clouds outlook for Singapore-listed plantation firms
[SINGAPORE] Singapore-listed palm oil firms with Indonesian exposure are treading cautiously as Jakarta pushes ahead with a sweeping land seizure. The authorities have confiscated more than 2 million hectares (ha) of allegedly illegal forest concessions, raising concerns over the impact of the potential fallout on these companies' operations. With reviews still ongoing, plantation groups, including Bumitama Agri and First Resources, that were contacted by The Business Times, either declined to comment or acknowledged regulatory discussions. In response to BT queries, Bumitama Agri , a pure upstream plantation player in Indonesia, said that it is in discussions with the Indonesian authorities, though it could not specify how much land may be affected. 'The process to fully resolve the matter with (the) relevant authorities is still ongoing,' said a spokesperson for the mainboard-listed company. 'However, we would like to assure you that aside from complying with all prevailing laws and regulations, Bumitama is fully committed to conducting its business sustainably by ensuring our initiatives are (up to date) with the ever-changing dynamics in the business landscape,' the spokesperson added. As at 2.04 pm on Wednesday (Aug 6), Bumitama Agri's shares were down 1.8 per cent or S$0.015 at S$0.82. The counter's market capitalisation stood at about S$1.5 billion. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up First Resources , a vertically integrated palm oil player primarily based in Indonesia, declined to comment, citing the ongoing review by the Indonesian government. Its counter was trading flat at S$1.55 as at 2.04 pm with a market capitalisation of S$2.4 billion. Golden Agri-Resources and Kencana Agri, the other two vertically integrated palm oil companies with significant plantation exposures in Indonesia, have not responded to BT queries. As at 2.04 pm, Golden Agri-Resources's counter was flat at S$0.26 with a market capitalisation of S$3.3 billion. Kencana Agri's shares were unchanged at S$0.09, and its market capitalisation stood at S$25.8 million. The lack of clarity from the major palm oil players on the Singapore Exchange (SGX) highlights potential financial and operational risks, given their Indonesian exposures. A research analyst from RHB told BT that while the new regulation issued 'may not be crystal clear' as is the case for many other regulations in Indonesia, it could affect entities ranging from smallholders to large companies. 'From what we understand, discussions are still ongoing,' said the analyst. The Indonesian forestry task force, known as Satgas PKH, was formed in February by President Prabowo Subianto under a new regulation issued in January. In early July, the task force announced that it had seized nearly 400,000 ha of oil palm plantations, previously controlled by 232 companies, and transferred the parcels to Agrinas Palma Nusantara, a new state-owned company formed in January by Prabowo's administration. On top of previously seized plantations given by Satgas PKH, this new addition takes the total land managed by Agrinas to more than 833,000 ha, potentially making it one of the world's largest oil palm growers. The 232 companies were not named. The task force is aiming to take over a total of 3 million ha by August, which will either be retained as oil palm and other crop plantations, or reforested, said Indonesian Defence Minister Sjafrie Sjamsoeddin, who heads Satgas PKH, during the handover ceremony on Jul 9. He noted that the authorities had so far seized more than 2 million ha of illegally run plantations in forest areas across the country, including those growing crops other than oil palms. Indonesia, as the world's biggest crude palm oil (CPO) producer, has 16 million ha of land under oil palm plantations, according to its authorities. Back in April, CGS International said that plantation companies, especially those with higher exposures in Central Kalimantan, may be affected as the Indonesian government was in the process of identifying the alleged illegal oil palm plantations. According to the brokerage's research team, private companies held 55 per cent of the country's oil palm plantation area as at 2023, while smallholders held 41 per cent, and state-owned companies held the remaining 4 per cent. Uncertified land While major SGX-listed palm oil plantation companies did not specify the risks associated with land loss in their earnings filings for the most recent financial year, Kencana Agri noted in its FY2024 financial report that the group was in the final process of obtaining business usage rights or Hak Guna Usaha (HGU) certificates for 4,371 ha of land. The number was the same as at the end of 2023. 'Prior to the issuance of the HGU certificates, such land is considered as uncertified land,' said the company in the filing released in February. It noted that pending the issue of HGU certificates, the group is permitted to physically occupy and build on the uncertified land and to plant and harvest crops. 'However, as the administration of land laws and regulations may be subject to a certain degree of discretion by the Indonesian authorities, there is no assurance that the relevant authorities would not take a different approach or view as regards the uncertified land, its use, registration and future disposal for value,' said Kencana Agri in the filing. It added then that the group's interest in the 'uncertified land' may be affected if the authorities take a different approach. CPO outlook Besides the potential land loss, the volatility of CPO prices also adds to the outlook risk of the palm oil players. RHB Research highlighted in a note in July that it expects CPO prices to remain unstable given the ever-changing geopolitical situation. The team revised down its CPO price assumptions to RM4,100 (S$1,248) per tonne for 2025, from RM4,300 per tonne previously. 'Fundamentally, however, global supply and demand will likely be more balanced in 2026, as supply improves, while demand should pick up given the more attractive relative prices,' wrote the team.
Yahoo
10-06-2025
- Business
- Yahoo
3 Singapore Stocks Reporting Higher Profits and Dividend Yields Exceeding 5.8%
It can be tough to find stocks that offer a nice mix of growth and dividends. Stocks offering high growth generally pay out little or no dividends, while those with high dividend yields may not offer much growth. But if you are looking for this sweet combination, there are several stocks offering it – you just need to look harder. We dig the homework for you and showcase three companies that not only reported higher profits, but also sport dividend yields of 5.8% or higher. Multi-Chem has been distributing IT products since 2002 and is a leading regional cybersecurity and network performance products. The group has a presence in 24 cities across 13 countries. Multi-Chem reported a commendable set of earnings for 2024, with revenue rising 4% year on year to S$683.7 million. Gross profit inched up 3% year on year to S$97.5 million. The group's net profit increased by 14% year on year to S$30.8 million. Multi-Chem generated free cash flow of S$36.1 million for 2024, up 45% year on year. The group declared a final dividend of S$0.142, taking the total 2024 dividend to S$0.253. At a share price of S$3.09, shares of the IT distributor provide a trailing dividend yield of 8.2%. Management believes that IT is still a critical requirement in businesses and that security will remain a major aspect of IT infrastructure. This demand should carry the business forward to the next level, and the group will scout for opportunities for regional expansion. Multi-Chem will also curate the products it carries so that they can do their best for the principals they represent. First Resources is a leading palm oil producer which manages more than 200,000 hectares of oil palm plantations across various provinces in Indonesia. The group's activities include the cultivation of oil palms, harvesting the fruits, and milling them into crude palm oil (CPO). First Resources reported a stellar set of earnings for 2024. Sales increased by 5.9% year on year to US$1 billion while gross profit jumped 22.8% year on year to US$445.7 million. Net profit leapt 69.1% year on year to US$245.8 million. The CPO producer's underlying net profit surged 56.1% year on year to US$228.8 million. First Resources generated a positive free cash flow of US$66.5 million for the year, reversing the negative free cash flow of US$36 million for 2023. A final dividend of S$0.063 was proposed, taking the total 2024 dividend to S$0.098. The total dividend was 58.1% higher than the S$0.062 paid out the year before. At S$1.42, shares of First Resources provide a trailing dividend yield of 6.9%. For 2024, 3.8 million tonnes of fresh fruit bunches (FFB) were harvested, representing a 6% year-on-year increase. Around 1 million tonnes of CPO were harvested, up 5.5% year on year. The expected capital expenditure for 2025 is around US$160 million and will be used for the replanting of oil palms, conversion of rubber to oil palm, and the upgrading and maintenance of existing CPO mills. Indonesia's expansion of its biodiesel mandate is expected to tighten global palm oil supplies, which will help to support CPO prices. First Resources has commented on the replanting process for plantation assets acquired in late 2023 and believes that the integration of mills, plantations, and land bank in the Riau province will yield higher contributions in the coming years. Sing Investments & Finance, or SIF, is a finance company offering a full spectrum of financial products and services, including deposits, personal financing, and corporate finance. For 2024, net interest income rose 18% year on year to S$64.7 million while non-interest income jumped 20% year on year to S$7.3 million. As a result, total income increased by 18% year on year to S$72 million. Net profit increased by 9% year on year to S$36.3 million. A first and final dividend of S$0.065 was declared, slightly above the S$0.06 that was paid out a year ago. SIF's shares offer a trailing dividend yield of 5.8%. Management has a cautious view for 2025 as it identified the risks of geopolitical conflict and the potential shift in trade policies and relationships. Trump's tariffs have also added yet another layer of uncertainty to the mix. SIF also recognises that there are growth opportunities, but will tread cautiously amid the uncertainty. How do rich Singaporeans invest when volatility hits? They turn to companies with cash, history, and discipline. This free report highlights 5 blue chips that deserve your attention. Get your copy here and see who made the list. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! Disclosure: Royston Yang does not own shares in any of the companies mentioned. The post 3 Singapore Stocks Reporting Higher Profits and Dividend Yields Exceeding 5.8% appeared first on The Smart Investor. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
First Resources Limited's (SGX:EB5) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
First Resources (SGX:EB5) has had a rough three months with its share price down 12%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Particularly, we will be paying attention to First Resources' ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for First Resources is: 17% = US$258m ÷ US$1.5b (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.17 in profit. See our latest analysis for First Resources Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To begin with, First Resources seems to have a respectable ROE. Especially when compared to the industry average of 7.9% the company's ROE looks pretty impressive. This certainly adds some context to First Resources' decent 18% net income growth seen over the past five years. We then compared First Resources' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 14% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about First Resources''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. With a three-year median payout ratio of 48% (implying that the company retains 52% of its profits), it seems that First Resources is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Moreover, First Resources is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 49% of its profits over the next three years. Accordingly, forecasts suggest that First Resources' future ROE will be 15% which is again, similar to the current ROE. Overall, we are quite pleased with First Resources' performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. That being so, according to the latest industry analyst forecasts, the company's earnings are expected to shrink in the future. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
29-04-2025
- Business
- Yahoo
First Resources (SGX:EB5) Will Pay A Larger Dividend Than Last Year At $0.063
First Resources Limited's (SGX:EB5) periodic dividend will be increasing on the 15th of May to $0.063, with investors receiving 70% more than last year's $0.037. This takes the annual payment to 6.3% of the current stock price, which is about average for the industry. We've discovered 2 warning signs about First Resources. View them for free. While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. Based on the last dividend, First Resources is earning enough to cover the payment, but then it makes up 187% of cash flows. This signals that the company is more focused on returning cash flow to shareholders, but it could mean that the dividend is exposed to cuts in the future. EPS is set to fall by 4.3% over the next 12 months. If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 74%, which is comfortable for the company to continue in the future. See our latest analysis for First Resources The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The dividend has gone from an annual total of $0.0331 in 2015 to the most recent total annual payment of $0.0724. This works out to be a compound annual growth rate (CAGR) of approximately 8.1% a year over that time. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. We are encouraged to see that First Resources has grown earnings per share at 23% per year over the past five years. First Resources is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future. Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. While First Resources is earning enough to cover the payments, the cash flows are lacking. Overall, we don't think this company has the makings of a good income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've identified 2 warning signs for First Resources (1 is a bit unpleasant!) that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
