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KUALA LUMPUR (Nov 17): FGV Holdings Bhd today reported a third quarter (3Q) net profit of RM136.89 million versus a net loss of RM262.41 million a year earlier, as the group’s financial performance improved by largely due to higher crude palm oil prices (CPO) and lower losses in the company’s sugar segment.
In a statement to Bursa Malaysia today, FGV said that the group’s revenue increased to RM3.99 billion in the third quarter ended September 30, 2020 (3QFY20) from RM3.55 billion.
“For the period under review, the price of crude palm oil (CPO) averaged RM2,645 per metric ton (MT), which was higher than the average CPO price obtained in 3QFY19 of RM1,983 per MT.
“The sugar sector posted a lower LBZT (loss before zakat and taxes) of RM56 million in 3QFY20, compared to a loss of RM220 million in 3QFY19. This reduction in loss was due to higher sales revenue attributed to a better volume in the industry and export segments, as well as a higher export premium, “said FGV.
During the first nine months of FY20, FGV said that the cumulative net profit was RM15.09 million compared to a net loss of RM317.98 million in the previous year.
Revenues were, however, lower at RM10.07 billion versus RM10.1 billion.
Looking ahead, FGV said the group expects the CPO price to remain strong through the end of the year, although the improvement in performance achieved to date is unlikely to be sustained due to weather uncertainties and the partial lock in Sabah.
FGV said its sugar business will continue to focus on strategies to improve operating efficiency and financial performance.
“The board expects the overall business climate to remain uncertain and volatile,” FGV said.
In Bursa today, FGV’s share price rose five sen or 4.24% at 2.33 pm to RM1.23 for a market value of approximately RM4.31 billion.
The shares saw some 17 million shares trade.
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