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Malaysia's Felda Global Ventures posts 35% rise in profit
[KUALA LUMPUR] Felda Global Ventures, the world's third-largest palm plantation operator, reported a 35 per cent rise in second-quarter earnings, supported by stronger crude palm oil production following moves to boost fruit yields.
The Malaysian firm's net profit rose to RM62.2 million (S$21 million) in the quarter ended June from RM46.1 million in the same period last year.
Revenue eased slightly to RM4.14 billion from RM4.19 billion the previous year.
"Rising commodity prices have provided optimism to the plantation's earnings outlook and we are in a good position to take advantage of the general tightness in supply," Felda Global chief executive Zakaria Arshad said in a statement.
Palm oil output is facing a production squeeze this year due to the ongoing effects of a crop damaging El Nino weather event, which brings hot, dry weather to Southeast Asia and lowers fruit yields.
Felda, which has implemented measures to improve fruit yields, reported a 35 per cent increase in yield per hectare from previous quarter, while the average cost of crude palm oil output fell 9 per cent.
The company announced its results during the Kuala Lumpur stock exchange's midday break. Before the break, its shares were trading 0.9 per cent, outperforming a 0.2 per cent decline in the benchmark index.