Significant non-cash financial gain on mark-to-market on cross currency swap of Rp132b in 2Q09 vs a loss of Rp25b in 1Q09 due to appreciation of Rupiah vs. US Dollars. Higher CPO sales volume (+19% qoq) and higher CPO ASP (+11% qoq) Revenue increased by 31% qoq

Gross margin improvement in 2Q09 due to strong CPO prices. 1H09 net profit, however, declined by 28% yoy. 1H09 net profit represented 59% of our forecast.

The company is expected new planting of 8,000 ? 12,000ha in 2009, with majority of new planting will be on West Kalimantan province. As of 1H09, the company managed to increase new planting by 5,059ha.

On the back of seasonality patterns, the company is expected higher 2H09 CPO production compared to 1H09. We expect margin to sustain as the company is expecting cash cost of production for nucleus CPO of about US$200/tonnes in 2009. Maintain HOLD on First Resources and reviewing our target price.