FELDA Global Ventures Holdings Bhd (FGV), which is the world’s biggest crude palm oil (CPO) producer, is confident of a better performance in the coming quarters due to stronger CPO prices and better uptake.
FGV president and group chief executive officer Datuk Mohd Emir Mavani Abdullah expects the CPO prices in the global market to improve in the coming quarters, which will have a positive impact on its revenue outlook.
“Revenue growth is anticipated to increase as CPO prices are expected to continue rising into the first quarter of next year.
“At the same time, ongoing acquisitions of palm plantations with the optimal age profile as well as our annual replanting programme of 15,000ha a year will continue to ensure that FGV’s plantation profile and yields will steadily improve in the years ahead,” he said in a statement.
CPO prices hit five-year low two months ago, scraping RM1,700 a tonne, but analysts expect it to strengthen in the first quarter of next year at between RM2,100 and RM2,300 a tonne.
FGV, which commands some seven per cent of the world’s CPO market, posted a lower net profit of RM282.3 million in the third quarter ended September, a 61.2 per cent drop, compared with RM822.4 million in the same period a year ago.
In the same quarter, revenue went up 34.3 per cent to RM4.3 billion, driven by the consolidation of Felda Holdings Bhd and Pontian United Plantations Bhd.
FGV also recorded a RM98.9 million fair value charge in the third quarter, relating to its land lease agreement, up 140.9 per cent from the same quarter last year.