KUALA LUMPUR, Nov 30 (NNN-BERNAMA) – Malaysia-based FGV, saw its net profit plunge in the third quarter ended Sept 30, due to lower Crude Palm Oil (CPO) prices.
FGV said in a bourse filing yesterday that, its net profit for the quarter tumbled 86.77 percent to 31.98 million ringgit (6.87 million U.S. dollars) from 241.67 million ringgit, a year ago.
The group’s revenue for the quarter also fell 20.63 percent to 4.91 billion ringgit from 6.18 billion ringgit.
According to the group, the poor performance was due to a weaker average CPO price of 3,948 ringgit per tonne, against 4,989 ringgit per tonne a year ago. This was further compounded by higher CPO production costs ex-mill by 35 percent.
Although production costs are expected to remain elevated, a potential moderation is foreseen by the group, due to lower fertiliser and energy prices. (1 ringgit equals 0.21 U.S. dollar)– NNN-BERNAMA
