KUALA LUMPUR — December 27, 2016: Felda Global Ventures Holdings (FGV) has asked its major investors to assess its business performance over a long period of time.
In acknowledging the paper losses incurred by all of FGV’s major investors, its Group President and Chief Executive Officer Datuk Zakaria Arshad said that as a plantation company, direct factors such as weather had affected its
performance, hence dampening investor sentiment.
“What is important, we need to see that FGV’s fundamentals are still strong and they should be taken into consideration in justifying investments,” he said in a statement today in response to the losses incurred by shareholders.
Since its listing in 2012, FGV has never failed to declare dividends to all its shareholders in the face of challenging situations.
“This clearly shows that FGV is an established company and has a huge potential to grow in the future,” Zakaria pointed out.
FGV shares have been trading around RM1.50 to RM1.70 this month.
Zakaria said that upon its listing in June 2012, the FGV share issued priced of RM4.55 surged to over RM5.00 at the outset as the market sentiment then was quite good.
The price of the commodity as well as the oil palm industry was at a high level then, while the listing was made at the right time.
After that, the world’s oil palm price declined, dampening investor sentiment on commodity-based counters, including FGV.
“A significant decline in FGV share price was first recorded in 2014 following a sharp decline in the world’s crude palm oil (CPO) price and massive floods,” said Zakaria.
Worse still, the worst El Nino on record hit the country in 2015, which had not only affected FGV but also other oil palm plantation companies.
In mid-2016, the world’s CPO price increased significantly, exceeding RM3,000 per tonne. However, due to the impact of the El Nino, production declined for a much longer time than expected.
Zakaria assured that FGV is determined to give good returns to shareholders and stakeholders through its business transformation and operations under the 2017-2020 Strategic Plan.
The strategic plan is expected to bear fruit in 2017 and help the group’s operations become sustainable in the long term. According to Zakaria, FGV is on the right track to achieve the administrative cost savings target of RM100
FGV is also actively improving its core business operations, restructuring its operations, optimising its assets, and strengthening its financial standing. — Bernama