KUALA LUMPUR (Feb 28): FGV Holdings Bhd posted net profit of RM75.79 million in the fourth quarter ended Dec 31, 2019 versus net loss of RM209.16 million in the year-ago period, due to improved crude palm oil margins, and significantly reduced operating costs.

In a bourse filing today, FGV said revenue for the quarter slipped to RM3.15 billion from RM3.23 billion a year earlier.

Earnings per share was 2.1 sen compared to loss per share of 5.7 sen previously.

FGV proposed a final dividend payment of 2 sen per share for the financial year ended Dec 31 (FY19).

It said the dividend is expected to be paid by mid-July 2020, subject to shareholders’ approval.

For FY19, FGV’s net loss narrowed to RM242.19 million from RM1.08 billion a year earlier, on the back of revenue of RM13.26 billion versus RM13.46 billion previously.

Reviewing its performance, FGV said it recorded lower impairment losses in 4Q19 amounting to RM17 million, as compared to RM151 million in 4Q18.

It explained that the decline in revenue was due largely to lower yields, which is in line with the national average, as a result of the lag effect from prolonged dry weather and lower rainfall in late 2018 and early 2019.

In a separate statement, FGV group chief executive officer Datuk Haris Fadzilah Hassan said the 4Q net profit was on the back of FGV’s aggressive transformation programme.

“We reached far into the core of the group to effect change at every level.

“Our intention is to institutionalise this change, to protect and enhance the interests of the owners of this company, now and in the future,” he said.

On its plans going forward, Haris Fadzilah said FGV’s plans to diversify its revenue streams is well underway.

“In FY20 FGV expects additional revenues of RM45 million from its integrated farming, renewable energy and animal feed businesses.

“While palm oil will remain our mainstay, this is an exciting diversification that will bring us and our smallholder partners added revenue and opportunities for growth,” he said.

At the midday break today, FGV shares were 4.96% or 6 sen lower at RM1.15, for a market capitalisation of RM4.19 billion.