With the price of oil increasing over the past year alternative oil producers are generating more profit on higher sales.

For example, First Resources, a major palm oil producer with plantations in Indonesia have posted a net profit of SGD97 million during its fourth quarter 2012, up 10.4% from the same quarter in 2010. In the filing with the Singapore Exchange First Resources reported that for the year ending December 2011, profits were up 44.7% to SGD369 million on sales of SGD621, also up 49.9% on 2010.

The long-term fundamentals of the palm oil industry remain favourable. In view of growing
demand from emerging markets and seasonal slowdown in palm oil production in 1H2012,
the Group expects palm oil prices to be well-supported in the near term despite continued
market volatility.