KUALA LUMPUR (Nov 30): FGV Holdings Bhd is expecting its first 7,000 foreign workers to arrive here in the first quarter of 2022, although its group chief executive officer Mohd Nazrul Izam Mansor said this would be subject to approvals from the Ministry of Human Resources and Home Ministry.
Speaking at a virtual press conference in conjunction with its quarterly result release, he said the plantation group will continue to monitor developments surrounding the Omicron Covid-19 variant, adding should there be a shutdown in the countries where the foreign workers are sourced from, it could impede the intake of workers.
“If the foreign workers do not arrive, then we would definitely see our operations or level of productivity similar to what we are seeing this year. But nonetheless, my expectation is that the impact would be offset by the high CPO prices,” Mohd Nazrul said.
In terms of the potential ceasing of work at its sites due to the pandemic, he said that FGV had shut down some of its estates and mills before, highlighting that the group has developed significant SOPs to ensure infections are curbed within its operational areas.
For the third quarter ended Sept 30, 2021, FGV posted amnet profit of RM399.39 million, surging 192% year-on-year from RM136.89 million, thanks to high CPO prices. Quarterly revenue grew 33% to RM5.32 billion from RM3.99 billion.
For the cumulative nine months, its net profit stood at RM702.79 million versus RM15.09 million a year earlier, while revenue increased by one-third to RM13.39 billion from RM10.07 billion.
Looking ahead, Mohd Nazrul said the group expects conditions to turn around starting from the second quarter of next year, noting the issues around labour shortage and the pandemic.
He said the group’s vaccination programme for its foreign workers nationwide is on track, and expects to achieve 100% completion of two doses very soon.
FGV’s share price went up two sen to RM1.48, giving it a market capitalisation of RM5.4 billion.