First Resources : 2Q2019 Results - Financial Statements and Dividend Announcement

FIRST RESOURCES LIMITED

Unaudited Financial Statements for the Second Quarter ("2Q") and Six Months ("6M") Ended 30 June 2019

1(a) An income statement and statement of comprehensive income or a statement of comprehensive income for the group together with a comparative statement for the corresponding period of the immediately preceding financial year

			Group
	6M 2019	6M 2018	Change	2Q 2019	2Q 2018	Change
	US$'000	US$'000	(%)	US$'000	US$'000	(%)
Sales	293,033	316,570	(7.4%)	143,428	181,011	(20.8%)
Cost of sales	(208,376)	(174,639)	19.3%	(97,005)	(102,394)	(5.3%)
Gross profit	84,657	141,931	(40.4%)	46,423	78,617	(41.0%)
Selling and distribution costs	(21,995)	(27,213)	(19.2%)	(12,943)	(14,784)	(12.5%)
General and administrative	(13,839)	(13,871)	(0.2%)	(6,583)	(6,851)	(3.9%)
expenses
Other operating expenses	(1,028)	(1,056)	(2.7%)	(513)	(521)	(1.5%)
Profit from operations	47,795	99,791	(52.1%)	26,384	56,461	(53.3%)
Gains/(losses) on foreign	228	6,271	(96.4%)	(326)	3,818	n.m.
exchange
(Losses)/gains on derivative	(760)	136	n.m.	52	(178)	n.m.
financial instruments
Net financial expenses	(7,689)	(8,979)	(14.4%)	(3,832)	(4,723)	(18.9%)
Other non-operating income	1,238	191	548.2%	1,306	1,333	(2.0%)
Profit before tax	40,812	97,410	(58.1%)	23,584	56,711	(58.4%)
Tax expense	(10,421)	(29,568)	(64.8%)	(6,144)	(18,838)	(67.4%)
Profit for the period	30,391	67,842	(55.2%)	17,440	37,873	(54.0%)
Profit attributable to:
Owners of the Company	29,255	63,667	(54.0%)	16,961	35,937	(52.8%)
Non-controlling interests	1,136	4,175	(72.8%)	479	1,936	(75.3%)
	30,391	67,842	(55.2%)	17,440	37,873	(54.0%)

n.m. - not meaningful

First Resources Limited	1 of 18
Unaudited Financial Statements for the Second Quarter and Six Months Ended 30 June 2019

1(a) An income statement and statement of comprehensive income (continued)

			Group
	6M 2019	6M 2018	Change	2Q 2019	2Q 2018	Change
	US$'000	US$'000	(%)	US$'000	US$'000	(%)
Profit for the period	30,391	67,842	(55.2%)	17,440	37,873	(54.0%)
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
Fair value (losses)/gains on cash	(4,517)	11,730	n.m.	(5,883)	(7,326)	(19.7%)
flow hedges
Fair value (gains)/losses on cash
flow hedges transferred to the	(79)	(3,312)	(97.6%)	3,608	10,533	(65.7%)
income statement
Foreign currency translation	31,581	(84,267)	n.m.	9,880	(62,052)	n.m.
Other comprehensive income for	26,985	(75,849)	n.m.	7,605	(58,845)	n.m.
the period, net of tax
Total comprehensive income for	57,376	(8,007)	n.m.	25,045	(20,972)	n.m.
the period
Total comprehensive income
attributable to:
Owners of the Company	55,028	(8,698)	n.m.	24,317	(20,147)	n.m.
Non-controlling interests	2,348	691	239.8%	728	(825)	n.m.
	57,376	(8,007)	n.m.	25,045	(20,972)	n.m.
n.m. - not meaningful
Additional Information
			Group
	6M 2019	6M 2018	Change	2Q 2019	2Q 2018	Change
	US$'000	US$'000	(%)	US$'000	US$'000	(%)
EBITDA
Profit from operations	47,795	99,791	(52.1%)	26,384	56,461	(53.3%)
Depreciation and amortisation	33,749	34,151	(1.2%)	16,367	17,481	(6.4%)
EBITDA	81,544	133,942	(39.1%)	42,751	73,942	(42.2%)
EBITDA margin	27.8%	42.3%		29.8%	40.8%

First Resources Limited	2 of 18
Unaudited Financial Statements for the Second Quarter and Six Months Ended 30 June 2019

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

	Group	Company
	30 Jun 2019	31 Dec 2018	30 Jun 2019	31 Dec 2018
	US$'000	US$'000	US$'000	US$'000
ASSETS
Non-current assets
Bearer plants	627,670	613,020	-	-
Plasma receivables	57,420	46,401	-	-
Property, plant and equipment	342,300	327,403	3,874	4,517
Land use rights	46,425	45,892	-	-
Investment in subsidiaries	-	-	727,081	481,587
Goodwill	82,960	81,013	-	-
Other intangible assets	20,970	20,515	-	-
Unquoted investment at FVTPL	5,775	5,775	5,775	5,775
Derivative financial assets	-	1,028	-	1,028
Tax recoverable	60,812	45,328	-	-
Deferred tax assets	60,453	54,702	-	-
Loan to subsidiary	-	-	124,125	367,410
Other non-current assets	486	369	-	-
Total non-current assets	1,305,271	1,241,446	860,855	860,317
Current assets
Biological assets	17,596	17,183	-	-
Plasma receivables	1,511	4,525	-	-
Inventories	86,841	97,562	-	-
Trade receivables	38,749	37,392	-	-
Other receivables	2,900	3,425	316	313
Derivative financial assets	778	2,882	211	994
Advances for purchase of property,	27,516	18,870	-	-
plant and equipment
Other advances and prepayments	4,071	3,515	316	359
Prepaid taxes	45,325	44,338	-	-
Restricted cash balances	46,495	44,540	43,598	42,718
Cash and cash equivalents *	43,559	55,359	860	4,028
Total current assets	315,341	329,591	45,301	48,412
Total assets	1,620,612	1,571,037	906,156	908,729

• As at 30 June 2019, the Group has bank overdrafts amounting to US$69.5 million (31 December 2018: US$57.1 million) which have been netted against cash at banks as the Group has the legal rights to set off the overdrafts against the cash at banks, which are with the same banks.

First Resources Limited	3 of 18
Unaudited Financial Statements for the Second Quarter and Six Months Ended 30 June 2019

1(b)(i) A statement of financial position (continued)

	Group	Company
	30 Jun 2019	31 Dec 2018	30 Jun 2019	31 Dec 2018
	US$'000	US$'000	US$'000	US$'000
LIABILITIES
Current liabilities
Trade payables	32,220	28,468	127	40
Other payables and accruals	25,765	31,317	2,314	3,934
Advances from customers	1,661	2,927	-	-
Loans and borrowings from financial	69,962	30,111	45,716	27,582
institutions
Islamic medium term notes	144,774	-	144,774	-
Derivative financial liabilities	53,869	921	53,588	-
Provision for tax	8,274	21,244	786	900
Total current liabilities	336,525	114,988	247,305	32,456
Non-current liabilities
Loans and borrowings from financial	95,247	109,817	90,711	106,795
institutions
Islamic medium term notes	96,453	241,073	96,453	241,073
Derivative financial liabilities	28,773	79,580	28,773	79,580
Provision for post-employment benefits	22,681	21,490	-	-
Deferred tax liabilities	20,765	18,074	581	528
Total non-current liabilities	263,919	470,034	216,518	427,976
Total liabilities	600,444	585,022	463,823	460,432
Net assets	1,020,168	986,015	442,333	448,297
EQUITY
Share capital	394,913	394,913	394,913	394,913
Differences arising from restructuring
transactions involving entities under	35,016	35,016	-	-
common control
Other reserves	(89,346)	(115,119)	7,824	12,507
Retained earnings	623,368	617,355	39,596	40,877
Equity attributable to owners of the	963,951	932,165	442,333	448,297
Company
Non-controlling interests	56,217	53,850	-	-
Total equity	1,020,168	986,015	442,333	448,297

First Resources Limited	4 of 18
Unaudited Financial Statements for the Second Quarter and Six Months Ended 30 June 2019

1(b)(ii) Aggregate amount of group's borrowings and debt securities

• amount repayable in one year or less, or on demand
• amount repayable after one year

				Group
	As at 30 Jun 2019		As at 31 Dec 2018
	Secured	Unsecured		Total	Secured	Unsecured		Total
	US$'000	US$'000		US$'000	US$'000	US$'000		US$'000
Amount repayable in
one year or less, or	2,167	212,569		214,736	2,529	27,582		30,111
on demand
Amount repayable	4,536	187,164		191,700	3,022	347,868		350,890
after one year
Total	6,703	399,733		406,436	5,551	375,450		381,001

Details of any collateral

Certain of the Group's bearer plants, land use rights and property plant and equipment are pledged to secure facilities from financial institutions.

As at 30 June 2019, the Group has undrawn committed unsecured credit facilities available of US$100.0 million, which may be utilised for the Group's general corporate purposes.

Subsequent to 30 June 2019, the Group has obtained additional committed unsecured credit facilities of US$230.0 million, which is available to be drawn down from February to June 2020 and may be utilised for the partial or full refinancing of the Islamic medium term notes due in June 2020 as well as the Group's general corporate purposes.

First Resources Limited	5 of 18
Unaudited Financial Statements for the Second Quarter and Six Months Ended 30 June 2019