Malaysia's FGV posts smaller Q3 net profit

MALAYSIAN palm oil planter FGV Holdings on Wednesday (Nov 30) logged a smaller third-quarter profit, and pegged fourth-quarter palm oil prices to average RM4,000 (S$1,211) per tonne.

Net profit in the July-September period fell to RM241.7 million, compared to a profit of RM399.4 million in the same quarter last year.

Revenue jumped 16 per cent to RM6.18 billion due to higher crude palm oil prices.

The outlook for Malaysia’s plantation sector is expected to remain resilient in the fourth quarter, said FGV, the world’s largest crude palm oil producer, in a bourse filing.

Increased crude palm oil (CPO) supply from seasonally higher output of palm fruit bunches as well as stockpiles in exporting countries such as Indonesia may continue to put downward pressure on palm oil prices, FGV said.

It is forecasting CPO prices to average around RM4,000 per tonne in the fourth quarter of 2022.

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Prices of the edible oil soared to record highs earlier this year after Russia’s invasion of Ukraine disrupted sunflower oil shipments, tightening global supply.

But prices have slumped since May and are on course for the first annual decline in four years, particularly after Indonesia eased earlier restrictions on exports.

FGV forecast 2022 production at 18.3 million tonnes, virtually unchanged from 18.1 million tonnes last year. REUTERS