FGV confident of saving up to RM100 million in capex

Syndicated News
Written by Syndicated News

KUALA LUMPUR, May 25 2016 : Felda Global Ventures Holdings Bhd (FGV) is confident of saving up to RM100 million in capital expenditure (capex) for the financial year ending Dec 31, 2016, in a move to ensure a higher profit compared to last year.

Group President and Chief Executive Officer Datuk Zakaria Arshad said the company is looking to freeze any new merger and acquisitions (M&A) worth RM70 million, while the remaining RM30 million will be saved from administrative costs.

“Internally, future and potential acquisitions will not be prioritised for the time being. Our focus is to capitalise and leverage on our existing assets, readjust current investments and streamline complexity in process.

“This M&A freeze is only temporary. But then, if there is a good opportunity (for M&A) this year, why not (take it)? If the opportunity is really good, I should just grab it,” he told reporters after a briefing on the group’s financial results here yesterday.

For the financial year ended Dec 31, 2015, FGV’s capex stood at about RM1.1 billion.

For the first quarter ended March 31, 2016, FGV posted a pre-tax loss of RM70.35 million from a pre-tax profit of RM72.88 million in the same period last year.But, revenue rose to RM3.75 billion from RM2.71 billion.

It said in a filing to Bursa Malaysia yesterday that the slide into the red was mainly due to lower crude palm oil (CPO) production in the palm upstream segment.

“The segment suffered a loss of RM100.55 million in 2016 on the back of weaker crude palm oil production.

“It declined by 14 per cent to 484,000 metric tonnes in tandem with lower fresh fruit bunch production of 930,000 metric tonnes recorded in 2015 to 781,000 metric tonnes this year,” it added. – Bernama



About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.