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FGV Remains Resilient and Posts Net Profit of RM521.86 million

  •  Revenue up 30.8%, operating profits increased by 10% 
  • Group’s Q4 revenue up 17% to RM4.30 billion 

KUALA LUMPUR, 24 FEBRUARY 2015 – Felda Global Ventures Holdings Berhad (FGV), the global agribusiness and palm oil company, has recorded a profit after taxation and zakat of RM521.86 million for the financial year ended 31 December 2014.

FGV’s fourth quarter net profit rebounded from a net loss of RM9.3 million in the preceding quarter to a net profit of RM20.21 million. (more…)

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FGV Remains Resilient and Posts Net Profit of RM521.86 million

  •  Revenue up 30.8%, operating profits increased by 10% 
  • Group’s Q4 revenue up 17% to RM4.30 billion 

KUALA LUMPUR, 24 FEBRUARY 2015 – Felda Global Ventures Holdings Berhad (FGV), the global agribusiness and palm oil company, has recorded a profit after taxation and zakat of RM521.86 million for the financial year ended 31 December 2014.

FGV’s fourth quarter net profit rebounded from a net loss of RM9.3 million in the preceding quarter to a net profit of RM20.21 million.

FGV posted a revenue of RM16.4 billion in 2014, a rise of 30.8% from the previous year. It delivered a strong growth in gross profit of RM2.14 billion compared to RM878.27 million in the same period the last financial year.

At the same time, operating profit increased by 10% to RM1.03 billion in 2014 from RM939.66 million, the year before

FGV’s Group President and Chief Executive Officer, Dato’ Mohd Emir Mavani Abdullah said, FGV has also realised a higher average crude palm oil (CPO) price of RM2,410 per metric tonne (MT) compared to RM2,333 per MT in 2013 and a higher oil extraction rate (OER) of 21.01% compared 20.44% from the previous year.

“As earlier reported, one of the main reasons for the revenue growth was attributed to Felda Holdings Bhd. (FHB) being fully consolidated into FGV’s financial performance. Through this, FGV has obtained operational efficiencies as well as synergies within the plantation value chain of the FGV Group.

Our ability to drive operational improvements and efficiencies, as well as reduce operational costs at the plantation sites have enabled us to remain resilient and achieve a satisfactory performance, amidst the ever changing market conditions

“Our ability to drive operational improvements and efficiencies, as well as reduce operational costs at the plantation sites have enabled us to remain resilient and achieve a satisfactory performance, amidst the ever changing market conditions,” said Emir.

On the upstream performance, Emir said the company continues to undertake aggressive replanting of 15,000 hectares a year, which started in 2012. Therefore, FGV’s CPO production volume and fresh fruit bunch (FFB) processed declined slightly. One of the

contributing factors to the decrease in FFB is climate challenges including drought and to a lesser extent, floods.

Nevertheless, he added, FGV’s FFB production will further improve in the coming years when a more balanced age profile of trees is achieved, with a target of 60% prime palm by 2020.

Looking forward for this year, Emir said, with lower crude oil price, weakening Ringgit against US Dollar and uncertainty CPO prices, FGV expects 2015 to be another challenging year for the Group and the industry.

“The cold season may hamper CPO demand in the short term but CPO will be back in demand from the traditional markets such as Pakistan, India, China and the European Union (EU) once the warmer season and festive season kicks in,” he added.

In line with the aspirations of the strategic blueprint, Emir said FGV continues to chart new milestones with the incorporation of its two new companies namely PT Bumi Agro Nusantara, an entity based in Indonesia and FGV Trading Sdn. Bhd. (FGVT), a trading and marketing arm of FGV under the new enhanced business model.

“While the incorporation of PT Bumi Agro Nusantara is part of our upstream expansion, FGVT plays an important role in streamlining our internal palm value chain via the tolling mechanism. With refineries and mills focusing on efficiency and costs saving, our trading arm will focus on trading of physical palm oil related products, majority of which are produced by our Group.

These two companies will open a new chapter for the Group, as they are expected to contribute towards the 2015 performance,” he said.

On top of this, FGV also aims to strengthen and restructure its Group of companies through the consolidation and divestment of non-core businesses and non-performing assets. With a sound management plan in place, FGV has laid the foundations for sustainable growth through the 2014 transformation initiatives that will improve operational efficiencies to ensure returns to the Group and ultimately its shareholders.

For the financial year, FGV Board is recommending a final dividend of 4 sen per share totalling RM145.93 million. It has earlier paid out an interim dividend of 6 sen per share totalling RM218.89 million.

“We would like to accord our thanks to our loyal shareholders who continue to support FGV in our growth.” said Emir.

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FGV inks RM1.7 million agreement for Biodiversity Conservation with Borneo Conservation Trust

 Five year biodiversity conservation project the first of its kind 

KOTA KINABALU, 5 February 2015 – Felda Global Ventures Holdings Berhad (FGV), the world’s largest producer of Crude Palm Oil (CPO), contributed RM1.7 million to a five-year biodiversity conservation initiative with Borneo Conservation Trust (BCT), here today.

FGV through its wholly owned subsidiary, Pontian United Plantations Berhad (PUP) inked an agreement with BCT, witnessed by Sabah Minister of Tourism, Culture and Environment Datuk Seri Panglima Masidi Manjun and BCT Chairman Tan Sri Bernard Dompok.

The ceremony saw BCT Honorary Secretary Datuk Dr. Laurentius Ambu and FGV Head of Plantations (East Malaysia) Denys Collin Munang signing a Memorandum of Agreement to re-establish a Mega Biodiversity Corridor in Lower Kinabatangan Basin project.

The five-year project is a first of its kind to support the re-establishment, restoration and protection of key migratory routes for the wildlife to safely migrate between pockets of forests in the lower Kinabatangan basin. A key aspect of the project is to provide a sustainable alternative livelihood for the local communities living along the Kinabatangan River through a sustainable community eco-tourism program.

Animals migrating through the Lower Kinabatangan Basin include the Borneo pygmy elephants, Orang Utans and proboscis monkeys. It is estimated that there are currently over 300 pygmy elephants and 750 orang-utans in the lower Kinabatangan Basin.

With the cooperation of Sabah Wildlife Department, the project entails mapping the land parcel, enhancing forest protection, development and implementation of an eco-tourism and forest-related sustainable livelihood in one of the project site located in the Kinabatangan region.

FGV Group President and Chief Executive Officer Dato’ Mohd Emir Mavani Abdullah said the project reflects FGV’s commitment to sustainable practices in business.

“As a responsible agribusiness company, FGV is committed to best management and sustainability practices. Mega Biodiversity Corridor in Lower Kinabatangan Basin project is, without a doubt, an important and essential sustainability initiative,” he said.

Dato’ Mohd Emir said FGV has worked closely with Sabah Wildlife Department, Sabah Forestry Department and various NGOs including Borneo Conservation Trust to help conserve the biodiversity of lower Kinabatangan Basin.

“This sustainability initiative is in line with our status as an active member of the Roundtable on Sustainable Palm Oil (RSPO) and our International Sustainability and Carbon Certification (ISCC). FGV has a time bound plan to achieve certification for all its 72 mill complexes by 2017,” he said.

In October last year, FGV launched a demarcation exercise to re-establish the riparian reserve in its Sabah estates, creating a minimum distance of 50 metres between the plantation and the river bank culminating in a tree planting programme to secure the mega biodiversity of Lower Kinabatangan.

“By enhancing the riparian buffer zones and preserving the natural ecosystem, FGV continues to conserve the natural environment, mitigates carbon emissions, and creates an important wildlife corridor for the endangered species to migrate from one wildlife reserve to another,” said Dato’ Mohd Emir.

BCT Chairman Tan Sri Bernard Dompok congratulates the management of FGV for supporting the Mega Biodiversity Corridor in Lower Kinabatangan Basin project.

“The co-operation and commitment from FGV will further strengthen biodiversity conservation, protection and management issues of the ecological corridor in the Kinabatangan Mega Biodiversity Corridor area,” said Tan Sri Bernard Dompok.

Datuk Dr. Laurentius Ambu, the Honorary Secretary of BCT said the project has outlined a comprehensive programme that would be implemented in the next 5 years, adding that it would take at least three years before the biodiversity conservation initiative could take effect.

“With the involvement of FGV, we believe that the project activities such as the riparian restoration, wildlife monitoring especially on elephants and orang-utans; and protection of existing forestland could be implemented.

“The contribution from FGV will also indirectly aid the implementation of a management plan for Lower Kinabatangan Wildlife Sanctuary that will be headed by Kinabatangan Management Committee (KMC) soon.

“FGV should be seen as a role model for their contribution and commitment on the forest, wildlife and biodiversity protection in the Lower Kinabatangan Basin,” said Datuk Dr. Laurentius.

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