Genting Plantations dips 1% despite denying lands burned in Indonesia

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KUALA LUMPUR (Sept 25): Genting Plantations Bhd's (GenP) shares dipped 1% at mid-morning today despite the company denying a claim by environmental group Greenpeace that it was among 10 palm oil companies with the largest burned land in Indonesia.

At 11am, GenP fell 10 sen to RM9.88, valuing the group at RM8.86 billion.

Greenpeace in its mapping analysis had said some 8,100ha of Genting Bhd's concessions had been burned during the period.

Others in the top 10 are: Sungai Budi/Tunas Baru Lampung (with 16,500ha), Bakrie (16,500ha) Best Agro Plantation (13,700ha), LIPPO (13,000ha), Korindo (11,500ha), Fangiono Family (9,200ha), Amara (8,000ha), Salim (7,800ha) and SIPEF (7,800ha).

"The Indonesian government has not revoked a single palm oil licence due to these forest fires, nor has it given any other serious sanctions to these 10 companies," Greenpeace said in a statement accompanying the release of its findings yesterday.

However, in a letter sighted by theedgemarkets.com, GenP's Indonesian unit PT Globalindo Agung Lestari (PTGAL), which was listed in the analysis as having 5,000ha of burned land during the period, said no significant burned area has been found in its concession area.

"Based on the burn area map from the Indonesian Ministry of Environment and Forestry of the concession area, no significant burned area was found. The burned area was largely outside the concession area," said PTGAL in response to Greenpeace's allegations.

Although GenP's share price decline this morning was relatively marginal, its retreat was in tandem with other stocks in the plantation sector of Bursa Malaysia, with FGV Holdings Bhd, Sime Darby Plantations Bhd and TH Plantations Bhd following suit.

See also: Genting denies claim it is among palm oil companies with the largest burned tracts in Indonesia