- First Resources’ FY23 results were in line with our and Street expectations. Going forward, while productivity should improve and costs reduce, downstream margins could remain under pressure in 2024.
- - Read this at SGinvestors.io -
55% q-o-q decline in net profit in 4Q23
- First Resources (SGX:EB5) recorded a 55% q-o-q decline in net profit in 4Q23, resulting in a 49% y-o-y drop in FY23 earnings to US$165.1m. This came in largely in line with our and Street’s forecasts at 102% and 98% of FY23 estimates.
- - Read this at SGinvestors.io -
Briefing highlights:
4Q23 nucleus FFB production dropped by 8% q-o-q
- 4Q23 nucleus FFB production dropped by 8% q-o-q (+15.7% y-o-y), bringing FY23 FFB to 0.5% y-o-y – in line with management’s flattish growth guidance for last year.
- First Resources is expecting up to a 5% output growth for 2024, as weather conditions have somewhat regularised since Feb 2024. It is expecting output trends to normalise in 2024, with 1H:2H output at 43%:57%.
- We adjust up our FFB growth assumptions to 2-4% for FY24-25 from 0-2%;
Small inventory build-up in FY23.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-02-29
Read also RHB's most recent report:
2024-11-15 First Resources - Q-o-q Earnings Decline Despite Stronger Output.
Previous report by RHB:
2024-11-12 First Resources - Fairly Valued Despite CPO Price Assumption Hike.
Price targets by 3 other brokers at First Resources Target Prices.
Listing of research reports at First Resources Analyst Reports.
Relevant links:
First Resources Share Price History,
First Resources Announcements,
First Resources Dividends & Corporate Actions,
First Resources News Articles