PETALING JAYA: FGV Holdings Bhd narrowed its net loss for the third quarter ended Sept 30 to RM262.4 million, from RM849.5 million a year ago attributable in large part to impairments amounting to RM304 million, lower crude palm oil (CPO) price realised for the period and losses in the group’s sugar business.
Revenue for the period increased to RM3.55 billion, 11% higher than RM3.19 billion, due to significantly improved operational performance resulting in higher yields and lower costs.
‘The higher revenue was achieved despite a sharp decline in CPO price and the lower average selling price for sugar. For 3Q19, CPO prices averaged RM1,983 per metric tonne (MT), which was 11% lower than the average CPO price realised of RM2,224 per MT for 3Q18,” the group said in a statement.
Group CEO Datuk Haris Fadzilah Hassan said with a higher CPO price seen for the fourth quarter, FGV’s operational numbers would continue to improve.
“In addition to improving palm oil operations, FGV is also repositioning itself to capitalise on its large landbank and vast resources to create alternative earnings streams.
“We have identified clear strategies to derive value within the circular economy and to enter into adjacent businesses that will enable us to sweat our assets more. Potentially we are looking at additional revenues of RM 100 million a year,” he said.
For the nine months ended Sept 30, FGV’s net loss improved 63.5% to RM318 million, compared with a net loss of RM871.8 million previously. Revenue was slightly lower at RM10.1 billion, from RM10.2 billion before.
Looking ahead, Haris said he believed FGV is on track to achieve the tough targets that have been set by its board.
“This marked improvement in operational numbers can be attributed to the new agricultural management systems and processes that have been implemented over the last several months,” he said.
source https://www.thesundaily.my/business/fgv-narrows-q3-losses-to-rm2624m-EH1678107
No comments:
Post a Comment