KUALA LUMPUR - Felda Global Ventures Holding Berhad (FGV) will still continue to be profitable even if crude palm oil (CPO) prices record a significant drop this year.
Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim said the average CPO recorded in the first month was RM2,279 per tonne, down 12% compared with RM2,584 per tonne in 2014.
“FGV is experiencing shrinking profit for the period but the same thing is experienced by the majority of plantation companies in Malaysia, as per financial results announced recently.
“As of May 2015, CPO prices hovered just below RM2,200 per metric tonne,” said Razali, who is also an Umno Supreme Council member and the Member of Parliament for Muar, in a written reply in Parliament.
He was answering questions by Datuk Mansor Othman (PKR-Nibong Tebal) who asked the government to reveal the total losses faced by FGV with the fall in CPO prices in the market.
According to Razali, FGV had developed some new plans to compensate for the fall in CPO prices.
“Among the measures taken was to reduce operating costs with the introduction of new farm-level mechanisms, restructuring of subsidiaries and creating new commercial companies to reduce risk and generate profit.
“So far, the scheme has shown good results for FGV.”
FGV’s performance was previously condemned when the company’s shares listed on the Stock Exchange three years ago fell by more than 50% when it was listed. - Therakyatpost
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