Indonesia's First Resources 2007 op profits up 57%

27 February 2008 05:38  [Source: ICIS news]

SINGAPORE (ICIS news)--Indonesia-based First Resources posted a 57% year-on-year rise in its profit from operations to Rp 959.3bn ($106bn) for 2007 on increased selling volumes and high crude palm oil (CPO) prices, it said late on Tuesday.

The palm oil producer's sales for the year ended 31 December 2007 surged almost 98% to Rp1,691.4bn, while profit for the year rose around 79% to Rp626.9bn, it added.

CPO sales volumes jumped 119% to Rp1,504.4bn on strong worldwide demand, while palm kernel sales rose nearly 110% to Rp165.6bn, the company said in a statement.

The company's fresh fruit bunches sales decreased by 76%to Rp21.4bn due to certain changes in their sales agreements with processors. 

Its 2008 outlook was robust and it believed that palm oil prices would continue to remain high on increased edible oils demand from emerging markets like India and China, high crude oil prices, and tight vegetable oil supply worldwide the company said.

"Moving ahead, we believe that we are well-positioned to ride on the strong momentum of the global palm oil sector," said Mr Ciliandra Fangiono, Director and Chief Executive Officer of First Resources.

First Resources intended to increase its 2008 CPO output by expanding its palm oil plantations in Indonesia by another 18,000 hectares, it said.

The company had invested in its eighth CPO processing mill to increase its annual CPO processing capacity by nearly 12% to 2.61m tonnes, it said adding that the mill would be commissioned in the first quarter of 2009.

First Resources, which currently operates only in Indonesia, is one of the country's largest private sector producers and processors of crude palm oil and palm kernel, according to the Singapore Stock Exchange website.

($1= Rp9,055)
By: Arujnee J Ram
+65 6780 4359

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