FGV DECLARES THREE SEN DIVIDEND
Planter back to black with RM150m net profit as CPO price hits RM3,059 in Q4
FGV Holdings Bhd has swung back to profitability with a RM150.02 million net profit in the financial year ended Dec 31 last year from a net loss of RM246.17 million in 2019.
Revenue rose by 6.2 per cent to RM14.08 billion from RM13.26 billion previously.
For the fourth quarter, its net profit jumped 87.9 per cent to RM134.93 million from RM71.81 million in the same period in 2019, while revenue increased to
RM4 billion from RM3.15 billion previously.
Crude palm oil (CPO) price averaged RM3,059 per tonne during the October-December quarter, higher than the average RM2,159 per tonne realised in the fourth quarter of 2019.
Average CPO price realised for the financial year 2020 increased 32 per cent to RM2,675 per tonne.
FGV group chief executive officer Datuk Haris Fadzilah Hassan said this was its best full-year performance in five years and came despite various challenges faced by the group and palm oil industry last year.
Following the positive financial
performance and its healthy balance sheet, FGV declared a final dividend of three sen per share for the financial year 2020.
“The improved performance was due to higher CPO margin in tandem with higher CPO price realised, better sales volume, improved oil extraction rate and lower ex-mill production cost,” it said.
In the upstream segment, the group said fresh fruit bunches production increased three per cent to 1.04 million tonnes from 1.01 million tonnes previously due to improved crop recovery and higher mature hectarage.
Haris said FGV was allocating 75,000 tonnes from the group’s palm kernel expeller (PKE) production as animal feed for local consumption this year.
This is equivalent to 20 per cent of its total PKE production.
“FGV has also established our distributorship network throughout Peninsular Malaysia to ensure that supply reaches our local farmers effectively.”
Haris said to strengthen its consumer products business, FGV might launch six new product variants in the near term.
FGV remained steadfast in its efforts to continue implementing
its action plan to address the Roundtable Sustainable Palm Oil (RSPO) Complaints Panel (CP)’s directives since the last time FGV submitted its appeal to the RSPO on April 3 last year, he said.
“RSPO is conducting its verification audits to assess FGV’s progress in implementing the CP Directives. Six sites had been selected and the RSPO-appointed auditor has conducted the verification audit in four selected complexes in Peninsular Malaysia.
“The two remaining audits in Sabah are scheduled to take place next month and in April.”