First Resources

First Resources: reported FY13 production numbers in line with estimates. FFB nucleus grew 6.5% YoY. FFB plasma decline was compensated by a jump in external FFB purchases. Total FFB processed was recorded up 13.1% YoY. CPO production reached 588,792 t (+12% YoY), in line with estimates (100% of FY13E). In terms of productivity, in 2013, FR recorded lower yield (FFB yield and CPO yield at 18.7 and 4.3 tons/ha), contributed by the dilutive effect from higher percentage of young trees and the lower yielding newly acquired plantations. Mgt expects yield to return to 20- 22 tonnes/ha level in 2014 following the recovery of tree stress.