MARKET DEVELOPMENT
FGV Trading Targets Revenue Of Between RM6 Bln & RM8 Bln This Year
FGV Trading Targets Revenue Of Between RM6 Bln & RM8 Bln This Year
19/06/2015 (Bernama) - Felda Global Ventures Holdings Bhd (FGV)'s wholly owned subsidiary, FGV Trading, is targeting a revenue of between RM6 billion and RM8 billion this year.
FGV's transformation plan, which channeled its oil trading activities through FGV Trading, showed impressive growth with a revenue of RM2.5 billion in just four months of its trading operations since February, said a statement.
Head of Trading & Marketing and Logistics (TML) Cluster Datuk Khairil Anuar Aziz said FGV Trading would become the second largest contributor to the group's revenue, at 34 per cent.
"So far, FGV Trading has traded 1.3 million tonnes of crude palm oil (CPO) and this is a good achievement for a new company," he said.
He added that FGV Trading aimed to trade 4.7 million tonnes of CPO, 60 per cent from internal CPO while the rest from external sources.
FGV Trading, which is now headed by Chief Executive Officer Datuk Wira Adam, also planned to explore the potential of other high-valued vegetables oils for example coconut oil from the Philippines for the international market.
Its traditional market included China, Japan, Bangladesh, India and Pakistan, as well as, the Indo-China region such as Vietnam, Myanmar, Cambodia and Laos, the statement said, adding that it was also involved in the premium market for countries in Europe.
In line with FGV's land bank expansion and increase in CPO production, FGV Trading is also eyeing new markets among the countries of West Asia, the Mediterranean, North Africa, Eastern Europe and the Balkan regions.
In addition to the trading segment, FGV said the trading, marketing and logistics Cluster also planned to increase revenue through its logistics segment by increasing the capacity of the group's palm oil shipments.
Through the logistics segment, earnings are expected via its multimodal transport operator (MTO) unit, which is now eyeing the oil and gas industry in Rapid Pengerang, Johor.
To date, MTO has contributed about 20 to 30 per cent of annual revenue for the logistics segment.
"Based on the previous record in general, Felda Transport Services Sdn Bhd (Felda Transport) carried around six to seven million metric tonnes of CPO products and it is expected to increase in line with the plantation land bank expansion," said Khairil.
TML's Storage & Handling segment, Felda-Johore Bulkers, remains as FGV's largest and modern vegetable oils storage in the world with the ability to handle eight million tonnes per annum with a storage capacity of over 800,000 metric tonnes.
FGV's transformation plan, which channeled its oil trading activities through FGV Trading, showed impressive growth with a revenue of RM2.5 billion in just four months of its trading operations since February, said a statement.
Head of Trading & Marketing and Logistics (TML) Cluster Datuk Khairil Anuar Aziz said FGV Trading would become the second largest contributor to the group's revenue, at 34 per cent.
"So far, FGV Trading has traded 1.3 million tonnes of crude palm oil (CPO) and this is a good achievement for a new company," he said.
He added that FGV Trading aimed to trade 4.7 million tonnes of CPO, 60 per cent from internal CPO while the rest from external sources.
FGV Trading, which is now headed by Chief Executive Officer Datuk Wira Adam, also planned to explore the potential of other high-valued vegetables oils for example coconut oil from the Philippines for the international market.
Its traditional market included China, Japan, Bangladesh, India and Pakistan, as well as, the Indo-China region such as Vietnam, Myanmar, Cambodia and Laos, the statement said, adding that it was also involved in the premium market for countries in Europe.
In line with FGV's land bank expansion and increase in CPO production, FGV Trading is also eyeing new markets among the countries of West Asia, the Mediterranean, North Africa, Eastern Europe and the Balkan regions.
In addition to the trading segment, FGV said the trading, marketing and logistics Cluster also planned to increase revenue through its logistics segment by increasing the capacity of the group's palm oil shipments.
Through the logistics segment, earnings are expected via its multimodal transport operator (MTO) unit, which is now eyeing the oil and gas industry in Rapid Pengerang, Johor.
To date, MTO has contributed about 20 to 30 per cent of annual revenue for the logistics segment.
"Based on the previous record in general, Felda Transport Services Sdn Bhd (Felda Transport) carried around six to seven million metric tonnes of CPO products and it is expected to increase in line with the plantation land bank expansion," said Khairil.
TML's Storage & Handling segment, Felda-Johore Bulkers, remains as FGV's largest and modern vegetable oils storage in the world with the ability to handle eight million tonnes per annum with a storage capacity of over 800,000 metric tonnes.