SINGAPORE (May 14): First Resources reported 1Q18 earnings declined 42.8% to US$27.7 million ($37.0 million) from US$48.5 million in 1Q17.
Group revenue for the first quarter ended March was 30.2% lower at US$135.6 million from US$194.1 million last year, reflecting the combined effects of lower sales volumes and average selling prices.
With cost of sales declining 29.3% y-o-y to US$72.2 million, gross profit for 1Q18 came in at US$63.3 million, 31.2% lower than US$92.0 million a year ago.
Gains from foreign exchange increased 33.4% y-o-y to US$2.45 million, which arose mainly from the impact of foreign currency movements on monetary assets and liabilities of the subsidiaries.
Other non-operating expenses increased 143.5% y-o-y to US$1.14 million.
As at end-1Q18, the group’s cash and cash equivalents stood at US$273.6 million.
Looking forward, the group expects its effective tax rate in the 2Q18 to be higher due to the effects of withholding tax expense payable on the increased income to be received by the company from its foreign subsidiaries, which will be used to fund the FY17 special dividend and the partial prepayment of the company’s indebtedness.
Shares in First Resources closed 2 cents lower at $1.61.
