FGV slips into the red in Q4 due to impairments, weak CPO price

PETALING JAYA: FGV Holdings Bhd posted a net loss of RM208.8 million for the fourth quarter ended December 31, 2018 (Q4 2018), against a net profit of RM50.44 million in the previous corresponding quarter.

FGV said in a statement today that the results were largely hit by impairments and lower average crude palm oil (CPO) price realised of RM2,282 per metric tonne (MT) for the year.

For the quarter under review, the CPO price averaged at RM2,053 per metric tonne (MT), 24.6% lower RM2,723 per MT for Q4 2017.

Revenue for the quarter declined 24% to RM3.23 billion, from RM4.26 billion in the same quarter in 2017.

FGV said it recorded a loss before zakat and tax of RM139 million during the quarter as a result of impairments and provisions amounting to RM240 million.

Without impairments and provisions, it recorded a profit before zakat and tax of RM101 million for the period, compared to the previous corresponding quarter’s RM253 million.

“In the fourth quarter, the plantation operations were focused on plugging leaks, revising processes and implementing new controls to bring our estate performance in line with other large players in the industry,” FGV group CEO Datuk Haris Fadzilah Hassan said.

“Some of these initiatives are already starting to bear fruit, but the improvements will be more visible in 2019,” he added.

For the whole of 2018, FGV registered a net loss of RM1.08 billion, from a net profit of RM130.93 million, while revenue decreased 20.4% to RM13.47 billion from RM16.92 billion previously.

At 3.15pm, FGV shares were trading 6 sen or 5.1% lower at RM1.12 on 16.48 million shares done.

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