Business

FGV expects to do better in Q2

For the second quarter of this year, FGV expects to do better following some cost-cutting measures and good weather that should lead to better production.

For the second quarter of this year, FGV expects to do better following some cost-cutting measures and good weather that should lead to better production.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — June 15, 2016: Felda Global Ventures Holdings expects to perform better in the second quarter of this year through cost-cutting measures and good weather which would have improved fresh fruit bunch production.

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

Today, its President and Chief Executive Officer Datuk Zakaria Arshad said that FGV will only participate in deals that will bring good returns to the group and investors.

“We must ensure our decisions are based on the interest of our stakeholders, as well as the group as a whole,” said Zakaria after presenting business tithes here.

Yesterday, FGV announced that it had terminated the memorandum of understanding between its subsidiary Felda Global Ventures Downstream Sdn. Bhd. and Innogas Technologies Sdn. Bhd. and Newlight Technologies LLC.

The MoU was to produce biodegradable plastics from palm oil biomass waste in Malaysia. FGV informed Bursa Malaysia that it was unable to reach acceptable terms.

“We didn’t just simply terminate the MoU, we did it after a thorough review of the details, especially in terms of its returns.

“What’s important now is for us to focus on our core business. If there are new opportunities, we will have a look and find out if it will give good returns to the group and our stakeholders,” said Zakaria.

For Ramadan this year, FGV has allocated RM462,000 as business tithes . Of the total, RM242,000 was distributed to 400 people from the Klang Valley today.

The balance will be divided among several zones including Pasir Gudang, Kuantan, Prai, Felda Sahabat and Kalabakan in Sabah. — Bernama

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