Singapore plantation companies likely to report 2Q10 revenue rose on quarter due to seasonal improvement in palm fruit yields, but operating costs expected to rise more, resulting in compressed profit margins, says Daiwa, according to Dow Jones.

Daiwa notes all five Singapore-listed companies have plantations in Indonesia, which imposes export tax on palm oil producers. So with average monthly palm oil prices in 2Q10 higher vs 1Q10’s, selling costs also expected to be higher.

Expects earnings of First Resources (EB5.SG), Golden Agri-Resources (E5H.SG) to take additional hit in form of one-off costs. Says First Resources likely to book sizeable FX loss as it redeemed USD-denominated bond in 2Q10, while Golden Agri expected to incur higher staff bonuses. 2Q10 results due this week, with Golden Agri first to report, starting tomorrow.