First Resources Reports Strong Growth as Austindo Acquisition Fuels Revenue Surge

Acquisition Drives Revenue Jump

First Resources posted net profit of US$234.9 million for the six months ended June 30, a 57.4% increase from US$149.2 million in the same period last year. The Indonesian palm oil producer attributed the gain to higher production volumes and improved processing margins across its operations.

Sales revenue climbed 44.5% to US$973.6 million from US$673.9 million. The revenue surge reflected a full six-month contribution from PT Austindo Nusantara Jaya, which First Resources acquired in May 2025. In the prior-year period, Austindo contributed just two months of revenue.

Earnings per share reached US$0.1517, up from US$0.0963 in the first half of 2025. The company declared an interim dividend of S$0.08 per share, payable September 10, nearly doubling the S$0.045 per share paid in the corresponding period last year.

Production Metrics Show Double-Digit Growth

The volume of fresh fruit bunches harvested rose 10.2% to 2.2 million tonnes from two million tonnes year-on-year. Crude palm oil production increased 18.4% to 656,605 tonnes, reflecting both higher yields and the expanded plantation footprint from the Austindo deal.

Gross profit grew 45.7% to US$409.2 million, while earnings before interest, taxes, depreciation and amortisation climbed 31.3% to US$344.4 million. Underlying net profit, which excludes fair value gains on biological assets, rose 42.2% to US$216.2 million.

Balance Sheet Remains Solid

First Resources held cash and bank balances of US$229.2 million as of June 30. The company's gross gearing ratio improved to 0.53 times from 0.57 times at the end of December 2025, indicating reduced leverage relative to equity.

The financial position gives the company headroom to navigate market volatility and pursue operational investments in its Indonesian estates and mills.

Policy Shifts Add Near-Term Uncertainty

CEO Ciliandra Fangiono noted that new developments in Indonesia's palm oil export framework during the second quarter introduced market uncertainty and price volatility. Implementation details have since become clearer, moderating some of that uncertainty.

Fangiono highlighted several factors the company is monitoring for their potential impact on palm oil demand and pricing. These include Middle East geopolitical tensions, Indonesia's B50 biodiesel mandate requiring 50% palm oil content in diesel blends, and developing El Niño weather conditions that could affect regional crop yields.

Indonesia remains the world's largest palm oil producer, and policy changes around export levies, domestic consumption mandates, and sustainability standards can shift global supply-demand dynamics quickly. The B50 mandate, in particular, is expected to absorb significant domestic production and tighten export availability.

Regional Context

Palm oil prices have shown volatility in 2026 as Jakarta refines its export and biofuel policies. The Austindo acquisition positions First Resources as one of the larger integrated players in Indonesia, with plantations concentrated in Sumatra and Kalimantan.

The company's ability to capture higher margins through vertical integration into refining and kernel crushing has become more important as benchmark crude palm oil prices fluctuate. Investors in Singapore-listed plantation stocks have been sensitive to both Indonesian regulatory shifts and weather patterns that affect yield forecasts across Southeast Asia.

First Resources shares closed at S$3.67 on Thursday, down S$0.03 or 0.8% ahead of the earnings release.