FGV expects CPO to average RM2,600-RM2,700 a tonne this year

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV), which achieved a higher pre-tax profit of RM220 million for the fourth quarter ended Dec 31, 2016, expects crude palm oil (CPO) price to average at RM2,600 to RM2,700 this year.
Group president and CEO Datuk Zakaria Arshad projects CPO price to range from RM2,600 to RM3,000 in the next few months until the second quarter this year.
He said CPO price for second half of 2017 will depend on market demand, production growth and national inventory level.
On its rationalisation exercise, which includes closing down of four palm oil mills, two rubber processing plants and one palm oil refinery, Zakaria said the exercise involves a mutual separation scheme (MSS) that will see the group shaving off 3% of its 18,000 workforce.
Zakaria said the MSS will cost the group RM12 million. The entire rationalisation exercise will generate annual cost-savings of about RM13.5 million.