Malaysia's FGV posts quarterly profit, expects palm prices to remain strong

[KUALA LUMPUR] Malaysia's FGV Holdings (FGV), the world's largest crude palm oil producer, on Tuesday posted a third-quarter profit compared with a year-ago loss and said it expects the commodity's price to remain strong until the end of 2020.

The company, which posted its second consecutive quarterly profit, attributed results to higher crude palm oil (CPO) prices and lower losses in its sugar sector.

FGV in August reported a second-quarter profit of RM20.5 million (S$6.7 million).

"We expect both fresh fruit bunches and CPO production in Q4 FY2020 to be impacted by weather uncertainties and partial lockdown in Sabah," Haris Fadzilah Hassan, FGV's group chief executive, said in a bourse filing.

Sabah is Malaysia's largest palm oil producing state, accounting for 25 per cent of the nation's production, but a partial lockdown was imposed in some districts last month after a surge in coronavirus infections.

Third-quarter net profit was RM136.9 million, versus a loss of RM262.4 million a year ago.

Revenue rose to RM3.99 billion, from RM3.55 billion last year.

REUTERS