First Resources

First Resources: Posted FY13 underlying net profit of US$217m (+3%), above consensus estimates, on sales of US$626.5m (+4%). The resilient performance was primarily due to higher sales volumes as well as the realisation of some forward sales during the year. EBITDA rose 5% to US$338.9m. During the yr, the group increased its total planted area under mgt by 16.5% to 170.6k ha. FFB pdtn grew 4.5% to 2.3m tonnes, as FFB yield declined to 18.7 tonnes per ha (FY12: 23 tonnes per ha) largely due to biological tree stress and the combined dilutive effective from the newly mature and acquired plantations. The group’s financial position remained healthy with cash of US$272.2m and a low gearing ratio of 0.21x as at end ’13. Final DPS of 3.25¢ takes FY13 payout to 4.5¢ from 4¢.