FGV’s Q3 net loss widens to RM94.87m

The Sun (Malaysia) - - MEDIA & MARKETING -

PETALING JAYA: Felda Global Ven­tures Hold­ings Bhd’s (FGV) net loss widened to RM94.87 mil­lion in the third quar­ter of this year com­pared with RM33.92 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod, dragged down by sig­nif­i­cant losses at one of the jointly con­trolled en­ti­ties due to stock losses.

Rev­enue for the quar­ter un­der re­view dropped 7.1% to RM4.19 bil­lion from RM4.51 bil­lion.

In a fil­ing with the stock ex­change, FGV said its per­for­mance was also af­fected by lower crude palm oil (CPO) pro­duc­tion, higher raw sugar costs and lower earn­ings from the down­stream seg­ment.

FGV ex­pects the group to record a loss for the full fi­nan­cial year on the back of the slower global growth and the volatil­ity of the cur­rency mar­ket aris­ing from the strength­en­ing of the US dol­lar .

Nonethe­less, it said the sea­son­ally lower crop pro­duc­tion for the re­main­ing quar­ter would be po­ten­tially com­pen­sated by the pos­i­tive out­look for CPO prices in the near term on the back of full-year tighter sup­ply of palm oil by In­done­sia and Malaysia due to the im­pact of the El Nino weather phe­nom­e­non.

The up­side of CPO prices how­ever, would be lim­ited by the sup­ply of ed­i­ble oils and the re­duced com­pet­i­tive­ness of CPO from the nar­rower price dis­counts against soy­bean oil.

For the nine-month pe­riod, FGV swung into the red, reg­is­ter­ing a net loss of RM98.2 mil­lion against a net profit of RM15.74 mil­lion in the same pe­riod last year. Rev­enue was up 5.9% from RM11.41 bil­lion to RM12.09 bil­lion.

REUTERSPIX

A man walks past a wel­come sign­board out­side Felda Sun­gai Tengi Se­la­tan palm oil plan­ta­tion in Hulu Se­lan­gor. FGV’s per­for­mance was af­fected by lower crude palm oil pro­duc­tion.

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