Friday 29 Mar 2024
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KUALA LUMPUR (Nov 17): FGV Holdings Bhd expects crude palm oil (CPO) to trade between RM2,500 and RM2,600 per tonne in the first half of next year (1H21), slightly lower than the average of about RM2,747 per tonne seen from June to date.

While FGV group chief executive officer (CEO) Datuk Haris Fadzilah Hassan noted that the forward prices for the next six months to May 2021 are very strong, until reaching above RM3,000 per tonne, he said, the group would stick with its forecast range.

“We have our own views with regard to how the numbers will pan out, taking into account the issues of supply and weather conditions. It is a forecast that we are working on.

“Even though it looks good for the next six months, we are very conservative in our view in terms of how prices will develop throughout 2021,” he said during a briefing on the group’s performance for the third financial quarter ended Sept 30, 2020 (3QFY20).

CPO prices have been on an uptrend since May this year, having surged about 66% to RM3,283 per tonne as at yesterday from RM1,983 per tonne on May 4.

For the third quarter of this year, prices averaged at around RM2,645 per tonne, which helped FGV record its highest quarterly pre-tax profit since 4QFY17. In comparison, prices averaged at RM1,983 per tonne for the same quarter in 2019.

Stronger CPO prices, together with a lower loss from its sugar segment, led to FGV posting a net profit of RM136.89 million for 3QFY20 versus a net loss of RM262.41 million a year earlier. Quarterly revenue rose to RM3.99 billion from RM3.55 billion previously.

For the first nine months of FY20 (9MFY20), FGV said cumulative net profit stood at RM15.09 million versus a net loss of RM317.98 million a year earlier. Revenue was, however, lower at RM10.07 billion versus RM10.1 billion a year ago.

As at 4pm today, FGV shares were up two sen or 1.69% at RM1.20, giving the group a market capitalisation of RM4.38 billion.

Edited ByTan Choe Choe
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