Felda Global Ventures Q2 earnings at RM188m, dividend 5.5 sen (5222)

by **hlk** Tue 28 Aug 2012, 21:04

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGVH)
reported net profit of RM188.37mil in the second quarter ended June 30,
2012 from RM279.31mil a year ago and declared an interim dividend
payment of 5.5 sen a share to be paid on Nov 28.
It announced on
Tuesday revenue rose 75.8% to RM3.536bil from RM2.011bil. Cost of sales
was higher at RM3.071bil compared with RM1.499bil.
FGVH's
operating profit fell 31.7% to RM274.08mil from RM401.37mil a year ago
due to fair value changes in landlease agreement liability of
RM92.93mil and also lower gains of RM4.19mil compared with RM33.59mil a
year ago.
Its pre-tax profit fell 34% to RM301.50mil from RM456.68mil. Earnings per share were 5.2 sen compared with 15.80 sen.
For the first half, its earnings fell 40.3% to RM380.53mil from RM635.36mil a year ago.
Revenue
increased by 42% to RM5.256bil from RM3.699bil. However, fair value
changes in landlease agreement liability was RM140.48mil.
On the
outlook, FGVH said it expected the plantation segment to perform well
for the current financial year as it expected more resilient CPO prices
in the second half of the year and strong demand from key buyers from
China, India and Pakistan.
"The plantation segment will continue
its initiative to improve its palm oil trees' age profile in accordance
with its replanting policy.
"Subject to the weather condition, a total area of 16,000 hectares is expected to be planted by end of 2012," it said.
FGVH
said the division would remain focus on its initiatives to acquire
greenfield as well as existing plantations, some of which is expected
to materialize in the current financial year.
As for its downstream business, it said it would continue to turn it around to support its upstream segment.
On the sugar division, FGVH said the plan was to expand by pursuing strategic acquisitions and investments.
"Notwithstanding
the volatility of sugar prices, the sugar division is expected to be
able to sustain its satisfactory performance," it said.