FGV’s PBZT more than triple to RM170 mln in first 9 months
KUALA LUMPUR: Felda Global Ventures Holdings Bhd’s ( FGV) profit before zakat and tax ( PBZT) more than tripled to RM170 million in the first nine months ended Sept 30, 2017, compared with RM44 million in the same period last year, due to the strong performance by the Plantation and Logistics and Others ( LO) Sectors.
Revenue in the period rose by five per cent to RM12.7 billion from RM12.09 billion registered in the corresponding period previously.
The leading global agri-business and world’s largest crude palm oil (CPO) producer has also declared an interim dividend payment of five sen per share for some 3.64 billion ordinary shares under a single-tier system for the quarter ended Sept 30, 2017, amounting to RM182.41 million and expected to be paid on Dec 28, 2017.
In a statement yesterday, group president/chief executive officer, Datuk Zakaria Arshad, said for the first nine months of 2017, the Plantation Sector’s performance posted a marked improvement, achieving a profit of RM225 million against a RM30 million loss in the same period last year.
“We are encouraged by our strong set of results. The improvement is due to a 10 per cent rise in CPO production supported by a 3.0 per cent increase in fresh fruit bunches (FFB) production to 3.07 million tonnes on the back of higher CPO prices, increase in share of profits from joint-ventures and higher margins in the fertiliser business.
“In addition, the LO Sector recorded increased profits due to higher throughput and tonnage carried by transport operations in tandem with the increase in CPO production volume,” he said.
Meanwhile, for the third quarter ( 3Q) of 2017, FGV posted a 31 per cent rise in PBZT to RM114 million compared with the preceding quarter on the back of improvements in both Sugar and LO Sectors.
The Plantation Sector recorded a profit of RM107 million profit in 3Q on the back of 18 per cent quarter- on- quarter increase in FFB production, but its performance was offset by a higher land lease agreement charge, whilst the sugar business returned to black against the preceding quarter mainly due to a decline in raw sugar prices.
“In our continuous efforts to maximise yield, we have strengthened the estate operations through labour optimisation towards harvesting activities, extended the working hours and adopt aggressive foreign labour recruitment.
“The outlook is further supported by the transition of our younger palms into productive stage,” Zakaria said.
He said FGV’s performance had been on a positive upward trend from 1Q to 3Q, and based on the significant improvement in our FFB production in October, the company expected to perform better in the financial year 2017 compared to 2016.
“To further strengthen our core business, we have appointed professional subject matter experts to strengthen the composition of the FGV Board and senior management.
“The experts have the right experience and expertise to help move FGV forward and generate sustainable returns for our shareholders and stakeholders,” said Zakaria. — Bernama