Felcra can double its dividend payout next year, says Azmin

This article first appeared in The Edge Financial Daily, on March 28, 2019.
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KUALA LUMPUR: Felcra Bhd’s dividend payout to its over 112,000 settlers is expected to more than double to RM286.58 million next year, from RM122.82 million this year, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.

Mohamed Azmin said this can be achieved with the initiatives undertaken by the current administration to restructure the troubled entity.

The projection is also based on the improved operational efficiency, with annual productivity expected to increase to 17.91 million tonnes per hectare from 15.74 million tonnes in 2018, and with the oil extraction rate improving to 20.28% from 19.25%.

“Besides that, improved prices of the commodity in the global market will also help achieve the increased payout,” he said in a written parliamentary reply yesterday to Datuk Johari Abdul [PH-Sungai Petani].

Between 2014 and 2018, Felcra’s cash depleted to RM106 million from RM1.1 billion, a fall of RM994 million. The organisation also registered net liabilities of RM50.6 million in 2018 compared to net assets of RM869.5 million in 2014.