FGV net loss widens to RM94.87m in Q3

PETALING JAYA: Felda Global Ventures Holdings Bhd’s (FGV) net loss widened to RM94.87 million in the third quarter of this year compared with RM33.92 million in the previous corresponding period, dragged down by significant losses at one of the jointly controlled entities due to stock losses.

Revenue for the quarter under review dropped 7.1% to RM4.19 billion from RM4.51 billion.

In a filing with the stock exchange, FGV said its performance was also affected by lower crude palm oil (CPO) production, higher raw sugar costs and lower earnings from the downstream segment.

FGV expects the group to record a loss for the full financial year on the back of the slower global growth and the volatility of the currency market arising from the strengthening of the US dollar.

Nonetheless, it said the seasonally lower crop production for the remaining quarter would be potentially compensated by the positive outlook for CPO prices in the near term on the back of full-year tighter supply of palm oil by both Indonesia and Malaysia due to the impact of the El Nino weather phenomenon.

The upside of CPO prices however, would be limited by the supply of edible oils and the reduced competitiveness of CPO from the narrower price discounts against soybean oil.

For the nine-month period, FGV swung into the red, registering a net loss of RM98.2 million against a net profit of RM15.74 million in the same period last year. Revenue was up 5.9% from RM11.41 billion to RM12.09 billion.