First Resources Ltd (SGX:EB5): Q3 2025 Profit Surge, ANJ Acquisition and West Papua Exit Reframe the Palm Oil Story

Singapore — 8 December 2025

First Resources Ltd, the Singapore‑listed palm oil producer, has moved sharply back onto investors’ radar in late 2025 after a combination of surging quarterly profits, a transformative Indonesian acquisition and the strategic disposal of debt‑laden assets in West Papua.

The counter has rallied to around S$2.09, up roughly 36% over the past 12 months, outperforming the FTSE Developed Asia Pacific Index by more than 9 percentage points. ^[1] Analysts have responded with a wave of upgrades and higher target prices, while the company itself is guiding for a supportive palm oil price environment into 2026 on the back of subdued global supply growth and Indonesia’s expanding biodiesel mandate. ^[2]

Below is a deep dive into the latest numbers, strategic moves and forecasts shaping the investment case for First Resources Ltd (SGX:EB5) as of 8 December 2025.

Company snapshot: an integrated Indonesian palm oil player

First Resources was established in 1992 and has been listed on the Singapore Exchange since 2007. The group manages over 200,000 hectares of oil palm plantations in Indonesia’s Riau, East Kalimantan and West Kalimantan provinces. ^[3]

Independent data from SPOTT and RSPO filings put its total oil palm plantation area at about 215,000 hectares in 2024, including roughly 36,000 hectares of plasma (smallholder) area and close to 9,700 hectares of unplanted land designated for future development. ^[4]

Beyond upstream estates and mills, First Resources operates refinery, fractionation, biodiesel and kernel‑crushing facilities, allowing it to process crude palm oil (CPO) and palm kernel into higher‑value products such as biodiesel, refined bleached deodorised (RBD) olein and stearin. ^[5] The group’s downstream capacity has been progressively expanded and now totals around 1.35 million tonnes of refining and processing capacity, according to its own and SGX announcements. ^[6]

This integrated model is central to management’s strategy: upstream estates feed the refineries, while downstream operations aim to capture margins tied to biodiesel and other processed products.

Q3 2025 results: profits, production and pricing all move higher

Headline financials

For the quarter ended 30 September 2025 (3Q2025), First Resources delivered one of its strongest performances on record:

Sales jumped 82.5% year‑on‑year to US$463.3 million.
EBITDA rose 54.7% to US$163.8 million.
Underlying net profit attributable to shareholders climbed 43.5% to US$87.5 million, from US$61.0 million a year earlier. ^[7]

For the first nine months of 2025 (9M2025):

Sales reached US$1.14 billion, up 59.9% from US$711.1 million.
EBITDA rose 55.7% to US$426.0 million.
Underlying net profit surged 58.0% to US$239.6 million. ^[8]

The company attributes the performance to a combination of higher average selling prices (ASPs) for palm products and strong volume growth, helped by the consolidation of newly acquired PT Austindo Nusantara Jaya Tbk (ANJ). ^[9]

Operational momentum

Operationally, First Resources continued to post double‑digit volume growth:

Fresh fruit bunches (FFB) harvested – 9M2025:
- 3.33 million tonnes, +21.9% year‑on‑year.
CPO production – 9M2025:
- About 917,000 tonnes, +27.8%.
Palm kernel production – 9M2025:
- Around 202,000 tonnes, +29.5%. ^[10]

In 3Q2025 alone, FFB harvested rose 20.4% to 1.30 million tonnes, CPO production increased 26.3% to roughly 362,500 tonnes and palm kernel output climbed 28.1% to about 80,100 tonnes. ^[11]

Management emphasised that the growth was not solely acquisition‑driven. Excluding ANJ’s contribution, FFB harvested would still have risen about 8.1% and CPO production 12.6% over the nine‑month period, highlighting underlying productivity gains across the group’s existing estates. ^[12]

Balance sheet and gearing

As of 30 September 2025, equity attributable to shareholders stood at US$1.41 billion, up 2.3% from end‑2024, mainly on the back of accumulated profits. ^[13]

The group reported:

Gross gearing ratio: 0.63 times.
Cash and bank balances:US$328.3 million. ^[14]

First Resources also highlighted undrawn committed credit facilities of US$175.9 million, providing further liquidity headroom for integration and expansion. ^[15]

Strategic pivot: ANJ acquisition and full tender offer

One of the defining developments of 2025 for First Resources has been the acquisition of ANJ, an Indonesia‑listed plantation group.

91% stake acquired for US$329.8 million

On 18 March 2025, First Resources’ majority‑owned subsidiary Ciliandra Perkasa signed a conditional agreement to acquire a 91.2% stake (around 3.1 billion shares) in ANJ for approximately US$329.8 million, at 1,813 rupiah per share. ^[16]

The transaction was completed on 6 May 2025, with First Resources assuming the rights to the shares via novation. This immediately made ANJ a majority‑controlled subsidiary and significantly expanded First Resources’ upstream footprint.

Mandatory tender offer for remaining shares

Under Indonesian regulations, the acquisition triggered a mandatory tender offer for the shares the group did not already own:

First Resources launched an offer from 26 August to 24 September 2025 to acquire about 207.6 million ANJ shares, representing around 6.2% of ANJ’s issued share capital, at the same price of 1,813 rupiah per share. ^[17]
Including earlier on‑market purchases by Ciliandra Perkasa, the full tender process covered up to 8.8% of ANJ’s shares. ^[18]

First Resources has stated that ANJ will remain listed on the Indonesia Stock Exchange; it does not currently intend to delist or privatise the company. ^[19]

Why ANJ matters to the growth story

Management positions the ANJ deal as a vertical integration and scale play:

The acquisition is expected to boost First Resources’ CPO output by about 25% to around 1.25 million tonnes, enhancing utilisation of its 1.35 million tonnes of refining and processing capacity. ^[20]
Total plantation hectarage is projected to rise by roughly 25%, reinforcing First Resources’ status as a regional palm oil producer. ^[21]
ANJ’s estates are intended to serve as key feedstock suppliers for First Resources’ downstream operations, supporting biodiesel and refined product volumes. ^[22]

The group has outlined plans to rejuvenate unproductive plantations, extend the productive life of ANJ estates, upgrade infrastructure and logistics, and explore selective acquisitions to expand ANJ’s plantation area further. ^[23]

DBS Research, which has long covered the stock, now projects an approximately 11% compound annual growth rate (CAGR) in earnings from FY2024 to FY2027, driven largely by volume expansion from the ANJ assets despite a slightly softer long‑term palm oil price assumption. ^[24]

West Papua exit: small sale, big clean‑up

The other major strategic move this year has been First Resources’ decision to exit the oil palm plantation business in Indonesia’s West Papua province.

On 2 October 2025, the group announced it had sold its entire interests in PT Permata Putera Mandiri (PPM) and PT Putera Manunggal Perkasa (PMP), indirect subsidiaries of ANJ, for IDR 405.6 billion in cash, equivalent to roughly US$25 million at the time of announcement. ^[25]

Key details:

PPM and PMP together held about 7,400 hectares of nucleus oil palm plantations, a CPO mill and unplanted land bank in West Papua. ^[26]
As of 31 July 2025, the two entities carried net financial debt of around IDR 1.31 trillion (about US$80 million). ^[27]
The board noted that the net asset value of PPM and PMP was not materially different from the sale consideration and that the disposal was not expected to have a material impact on net tangible assets or earnings per share for FY2025. ^[28]

In its 3Q2025 results release, First Resources said the West Papua divestment is expected to reduce group net debt by approximately US$80 million and is part of a strategy to streamline its plantation footprint following the ANJ acquisition. ^[29]

The move also comes amid growing scrutiny of forest conversion in Papua and Kalimantan. Independent satellite‑based monitoring by Nusantara Atlas has highlighted ongoing deforestation in concessions linked to Ciliandry Anky Abadi and other groups associated with the Fangiono family, which is also behind First Resources. ^[30] While the company underscores its commitment to sustainable palm oil and RSPO certification, the exit from West Papua reduces its direct exposure to one of Indonesia’s more sensitive frontier regions.

Analyst reactions: upgrades, earnings beats and higher targets

Broker research after Q3 2025

The strong Q3 print and clearer visibility on ANJ integration have prompted several research houses to turn more positive:

Maybank raised its target price for First Resources from S$1.90 to S$2.40, maintaining a “Buy” rating and applying a 10x FY2026 price‑to‑earnings multiple. The analyst cited stronger operating visibility, quicker‑than‑expected clean‑up of newly acquired ANJ assets and the disposal of loss‑making non‑core assets, and projected dividend yields of around 6%. ^[31]
RHB Research also kept a “Buy” call but lifted its target price from S$2.10 to S$2.55, expecting earnings momentum to continue into 4Q2025 as production peaks and costs ease. It sees the full contribution from ANJ and resulting cost synergies as key drivers for 2026, alongside stronger CPO output and rising downstream margins from biodiesel volumes. ^[32]
UOB Kay Hian described 3Q2025 as a “results beat”, noting that 9M2025 earnings of around US$240 million already accounted for about 86% of its full‑year forecast and 84% of the street consensus, and highlighting expectations for a production peak in 4Q2025. ^[33]

Consensus targets and rating trends

Aggregators and data platforms reflect this positive swing in sentiment:

Stockopedia reports that shares trade at about S$2.09, with a trailing P/E of roughly 8.0x, a trailing dividend yield around 5.0% and a consensus target price near S$2.36, implying roughly 13% upside from the latest close. ^[34]
TipRanks summarises two recent analyst ratings on SGX:EB5 as “Moderate Buy”, with an average 12‑month target of S$2.20, about 5–6% above current levels. ^[35]
A Fintel compilation of research lifts the average price target to around S$2.41, framing this as roughly a 14% increase over the previous consensus level. ^[36]
For the US‑traded ADR FSRCY, MarketWatch data show an average analyst rating of “Buy” and an average target price of 1.82 (in US dollars) based on seven ratings, although liquidity in the ADR is far lower than on the SGX line. ^[37]

Across these sources, the broad message is consistent: First Resources now screens as an earnings upgrade story with mid‑teens percentage upside potential on broker target prices, supported by solid dividends.

Share price performance and valuation

As of early December 2025:

Share price: about S$2.09.
12‑month performance:+35.7%, outpacing the FTSE Developed Asia Pacific Index by roughly 9.4 percentage points.
Market capitalisation: approximately S$3.24 billion.
Valuation: trailing P/E around 8.0x; price sits nearly 27% above the 200‑day moving average, indicating strong positive momentum. ^[38]

First Resources also offers a trailing dividend yield near 5–5.5%, based on a last‑year payout of US$0.08 per share and current price levels, with brokers such as Maybank projecting yields of around 6% going forward if current earnings strength persists. ^[39]

For investors, that combination of single‑digit earnings multiple, double‑digit earnings growth and mid‑single‑digit yield is central to the bull case.

Industry backdrop: biodiesel demand and tight supply support prices

First Resources’ upbeat tone on the palm oil outlook is not occurring in a vacuum.

A Reuters poll earlier this year forecast Malaysian CPO futures averaging about 4,350 ringgit per tonne in 2025, roughly 5% higher than in 2024, driven largely by Indonesia’s expanded B40 biodiesel mandate, which is expected to absorb an extra 1.2–1.7 million tonnes of CPO and reduce export availability. ^[40]
A separate survey summarised by S&P Global Commodity Insights projected 2025 CPO prices at around 4,223 ringgit per tonne, again modestly above 2024 levels, citing tight supplies and strong biofuel demand. ^[41]
The World Bank’s April 2025 commodity forecast sees benchmark palm oil prices rising from US$963 per tonne in 2024 to US$1,020 in 2025 and US$1,040 in 2026, signalling expectations of structurally firmer pricing. ^[42]

Policy developments in Indonesia reinforce this narrative. The government fully rolled out the B40 biodiesel blend (40% palm‑based content) by March 2025 and is exploring a shift to B50 over the next few years, which would further increase domestic palm oil consumption. ^[43] To help fund subsidies for this expanded biodiesel programme, the authorities are raising the CPO export levy to a range of 4.5–10%, up from 3–7.5%. ^[44]

In its own commentary, First Resources has echoed these themes, pointing to “subdued global palm oil production growth” and the potential expansion of Indonesia’s biodiesel mandate as factors likely to tighten supply–demand balances and support palm oil prices in the coming quarters. ^[45]

ESG and sustainability: certifications vs. controversies

ESG considerations remain a key part of the investment debate around First Resources and the wider palm oil sector.

Company stance and certifications

First Resources positions itself as a producer of sustainable palm oil, with a published sustainability policy covering zero burning, conservation of high carbon stock and high conservation value areas, peat and water management, and engagement with local communities and smallholders. ^[46]

By December 2024, the group reported:

RSPO certification for ten subsidiaries, covering seven mills and more than 79,000 hectares of plantations in Riau and Kalimantan.
These certified areas represented about 45% of its nucleus planted area at the time. ^[47]

The company is also an RSPO member in its own right, with RSPO documentation reiterating its commitment to expanding certified acreage and working with plasma smallholders. ^[48]

NGO scrutiny and deforestation mapping

However, independent observers argue that the story is more complicated:

A February 2025 analysis by Nusantara Atlas found that while Indonesia‑wide palm oil deforestation slowed to about 31,000 hectares of old‑growth forest in 2024, certain groups remain active converters. The report notes that First Resources, a Singapore‑based RSPO‑certified producer, has corporate links to the Ciliandry Anky Abadi group and other entities still implicated in forest and peatland conversion. ^[49]
The same study lists several concessions associated with the Fangiono family / First Resources that continued to clear >50 hectares of forest in 2024, albeit at levels far below some of the worst offenders. ^[50]

Separately, investigative reporting and NGO campaigns over recent years have scrutinised corporate structures and related‑party links around First Resources, ANJ and other Indonesian plantation holdings, arguing that group‑level deforestation risks may be understated in listed company disclosures. ^[51]

The West Papua divestment therefore carries both financial and ESG significance: financially, it cuts net debt; from a sustainability perspective, it reduces direct involvement in one of Indonesia’s more intact forest regions, even as debates continue about historical land use and associated entities.

Key risks to the outlook

While the near‑term narrative is supportive, investors should weigh several structural risks:

Palm oil price volatility
Earnings remain heavily exposed to CPO prices and palm product spreads. A reversal in prices – due to weaker biofuel mandates, stronger competing vegetable oil supply or global demand shocks – would hit margins and cash flows.
Policy and regulatory changes
Indonesia’s export levies, biodiesel subsidy mechanisms and land‑use regulations are central to the economics of plantation players. Moves such as higher export levies or new environmental rules could affect profitability and asset values. ^[52]
Integration and execution risk at ANJ
Delivering the promised 25% boost to CPO output and realising downstream synergies requires successful replanting, yield improvement and operational optimisation across ANJ estates and mills. Integration delays or cost overruns could dilute returns.
ESG and reputational risk
Continued NGO scrutiny over deforestation and supply‑chain transparency, especially in Papua and Kalimantan, could influence financiers, large FMCG customers and regulators. Failure to adequately address such concerns risks exclusion from key sustainability‑linked value chains or investor universes. ^[53]
Macro and FX swings
With operations largely in Indonesia and reporting in US dollars, shifts in the rupiah and global interest‑rate cycles affect both financing costs and translation of local‑currency costs and revenues.

Investment takeaways: a high‑yield growth name with ESG caveats

As of 8 December 2025, First Resources Ltd (SGX:EB5) presents a mix of:

Strong operating momentum – double‑digit volume growth, robust margins and a Q3 that exceeded many forecasts. ^[54]
Strategic scale‑up – the ANJ acquisition meaningfully enlarges its upstream base and feeds its 1.35‑million‑tonne refining and biodiesel platform, with full benefits expected to show through in 2026. ^[55]
Balance‑sheet repair at the margin – the West Papua disposal removes heavily indebted assets and is projected to shave around US$80 million off net debt. ^[56]
Attractive headline valuation – around 8x trailing earnings and 5–6% dividend yield, with brokers’ target prices suggesting mid‑teens percentage upside. ^[57]

Counterbalancing these positives are commodity‑cycle exposure and ESG/reputational risks tied to historical deforestation narratives and the complexity of group‑level ownership structures in Indonesia’s palm oil industry.

For investors and portfolio managers, First Resources currently sits at the intersection of three big themes:

The re‑rating of efficient, high‑yield palm oil producers as biodiesel demand and tight supply underpin prices.
The shift toward integrated plantation‑to‑biodiesel value chains, in which ANJ could prove a key asset.
The escalating scrutiny of land‑use and deforestation, which will likely determine long‑term access to premium markets and sustainable capital.

How those forces balance out over the next 12–24 months will decide whether First Resources’ 2025 rally marks the start of a longer structural re‑rating or merely the top of another commodity‑driven cycle.