MARKET DEVELOPMENT
Dewan Rakyat: FGV Targets Over 60 Per Cent Young Oil Palm Tree Cultivation By 2020
Dewan Rakyat: FGV Targets Over 60 Per Cent Young Oil Palm Tree Cultivation By 2020
02/04/2015 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) is targeting a ratio of over 60 per cent young oil palm tree cultivation by 2020, the Dewan Rakyat was told Wednesday.
Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim said currently, FGV had reduced the number of old oil palm trees to 43 per cent, compared to 57 per cent in 2012.
"When there is an increase in the number of young oil palm trees and it's time to harvest them, the market price of palm oil would have increased compared to now.
"It will benefit the settlers besides increasing the value of the company's shares and give confidence to investors, because FGV's future prospects will be better," he said when replying to a supplementary question by Dr Mansor Abdul Rahman (BN-Sik).
Mansor had asked about the measures FGV would take to strengthen its investment value and restore investor confidence.
Razali said the reorganisation FGV's subsidiaries would also provide long-term benefits.
"The establishement of FGV Trading will manage trade for 3 million tonnes of raw palm oil. We are targeting a turnover of RM2.5 billion in the first year," he said.
Replying to Wan Hasan Mohd Ramli's (PAS-Dungun) original question, he said that FGV would emphasize on the cost-effectiveness of operations by creating a new business model to ensure stocks remained competitive.
He said FGV recorded a gross profit of RM2.4 billion and RM1.03 billion in operating profits last year, as reported by Bursa Malaysia on Feb 24.
"In 2013, FGV's gross profit was RM838 million while its operating profit was RM610 million. This shows good performance for FGV," he said.
However Razali said FGV's net profit last year fell to RM522 million from RM1.12 billion due to several factors including drought and floods, price uncertainty for raw palm oil and the 'fair value charges' that have to be observed in land lease agreements that had an impact on the account's performance.
"The fluctuations in palm oil prices are beyond the control of FGV. What we can do is to rebuild investor confidence and strengthen the company through rotation businesses to balance the income," said the Muar Member of Parliament.
Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim said currently, FGV had reduced the number of old oil palm trees to 43 per cent, compared to 57 per cent in 2012.
"When there is an increase in the number of young oil palm trees and it's time to harvest them, the market price of palm oil would have increased compared to now.
"It will benefit the settlers besides increasing the value of the company's shares and give confidence to investors, because FGV's future prospects will be better," he said when replying to a supplementary question by Dr Mansor Abdul Rahman (BN-Sik).
Mansor had asked about the measures FGV would take to strengthen its investment value and restore investor confidence.
Razali said the reorganisation FGV's subsidiaries would also provide long-term benefits.
"The establishement of FGV Trading will manage trade for 3 million tonnes of raw palm oil. We are targeting a turnover of RM2.5 billion in the first year," he said.
Replying to Wan Hasan Mohd Ramli's (PAS-Dungun) original question, he said that FGV would emphasize on the cost-effectiveness of operations by creating a new business model to ensure stocks remained competitive.
He said FGV recorded a gross profit of RM2.4 billion and RM1.03 billion in operating profits last year, as reported by Bursa Malaysia on Feb 24.
"In 2013, FGV's gross profit was RM838 million while its operating profit was RM610 million. This shows good performance for FGV," he said.
However Razali said FGV's net profit last year fell to RM522 million from RM1.12 billion due to several factors including drought and floods, price uncertainty for raw palm oil and the 'fair value charges' that have to be observed in land lease agreements that had an impact on the account's performance.
"The fluctuations in palm oil prices are beyond the control of FGV. What we can do is to rebuild investor confidence and strengthen the company through rotation businesses to balance the income," said the Muar Member of Parliament.