FGV records net loss of RM1.07bil for financial year 2018

By ALIFAH ZAINUDDIN / Pic by TMR FILE PIX

FGV Holdings Bhd posted its third successive net loss in the final quarter ended Dec 31, 2018 (4Q18) as the government-linked planter continued to be dampened by low revenues, more provisions and low crude palm oil (CPO) prices.

For the period under review, the planter recorded a net loss of RM208.8 million compared to RM50.44 million recorded a year ago.

For the Jan-Dec 2018 period, FGV booked a massive net loss of RM1.07 billion, the worst results for the planter since it became a public listed company. For FY17 the company posted a profit of RM130.93 million in. The planter also did not declare any dividend for the year, the first in the company’s history.

In a filing with Bursa Malaysia today, the plantation giant said revenue for the quarter dropped 24% year-on-year (YoY) at RM3.23 billion from RM4.26 billion in the corresponding quarter last year, in tandem with lower crude palm oil (CPO) prices.

“In 4Q18, 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. 

“Some of these initiatives are already starting to bear fruit, but the improvements will be more visible in 2019,” FGV group CEO Datuk Haris Fadzilah Hassan said in a statement.

Impairments and provisions amounting to RM1.04 billion had dragged the company’s financial performance together with the dismal CPO prices.

Total turnover was 20.4% lower YoY to RM13.47 billion from RM16.92 billion over the same period.