Felda Global promises 'good dividends' every year

KUALA LUMPUR- Felda Global Ventures Holdings Bhd (FGV) has guaranteed that it will pay cash dividends to the shareholders every year, regardless of the prevailing economic conditions.

FGV chief operating officer for domestic division Datuk Khairil Anuar Aziz said it will not waiver in its commitment even when the group is facing uncertain economic conditions.

"The group's management will make sure that each shareholder, especially the 12,635 smallholders who have toiled their land amid all the difficulties and are behind the very existence of Felda and FGV today, will be paid with good dividends every year," he said in an interview at FGV's headquarters here recently.

Khairil Anuar said although the globalscenario is uncertain, the company will make sure shareholders get the return on investment.

"The good dividend policy is in line with the company's pledge stated in the prospectus prior to its initial public offering last June, which is to distribute at least 50 per cent of its net profit as dividends," he said.

Khairil Anuar said FGV, the commercial arm of government-owned Federal Land Development Authority (Felda), is on track to end its financial year as a listed entity with a solid financial performance.

"This is partly driven by good crude palm oil prices, higher productivity and enhanced efficiency in our palm oil operations," he said.

Khairil Anuar said the performance is also due to its expansion plans as well as higher contributions from the more than 80 subsidiaries and associates in its stable of companies.

These include plantations, oleochemicals, oils and fats, logistics and manufacturing businesses spanning across the United States, Canada, Australia and West Asia.

Khairil Anuar said FGV is in the midst of expanding its business, especially in the downstream segment, as part of efforts to become one of the world's top palm oil, rubber and sugar producers and an agriculture powerhouse.

He said FGV, via its cooking oil subsidiary, Delima Oil Products Sdn Bhd, now has a presence in Myanmar's retail sector. It plans to set up local production and packaging plants to export FGV products to Laos, Cambodia and the Philippines.

On another note, Khairil Anuar said some 20,000 FGV employees are expected to receive bonuses based on their key performance indicators.

"FGV will not disappoint its workers and the bonus demonstrates the group's good financial health."

FGV owns some 350,000ha of plantation here and Indonesia and manages another 500,000ha for Malaysia's 112,635 smallholders.

It produces more than three million tonnes of crude palm oil, or a tenth of the global output.

In the third quarter ended September 2012, FGV made a net profit of RM245.6 million on the back of a RM3.7 billion revenue.

-btimes.com