FGV cautiously optimistic on outlook in second half of 2013

by **Cals** Thu 27 Jun 2013, 02:41

Business & Markets 2013

Written by Bernama

Wednesday, 26 June 2013 19:13

KUALA LUMPUR (June 26): Felda Global Ventures Holdings Bhd (FGV) is cautiously optimistic on outlook in the second half of 2013, and expects crude palm oil (CPO) prices to hover between RM2,400 and RM2,800 per tonne during the period.

FGV Group President Tan Sri Sabri Ahmad said the good demand for the commodity for the upcoming Ramadan would boost the CPO market.

FGV, the third largest oil palm PLANTATION [] operator in the world based on planted hectarage, has about 350,000 hectares of oil palm plantation estates in Malaysia and produced 5.2 million metric tonnes of fresh fruit bunches in 2012.

The group has operations in 10 countries across four continents and is principally engaged in three main business segments, namely, plantations, downstream and sugar business.

"We spend about RM300 million a year for replanting. The average age of our palm trees is about 16 to 17 years old," Sabri said at a media briefing after FGV's first annual general meeting (AGM) as a public listed company.

The AGM, which was attended by 1,569 shareholders, represented 16 per cent of the shareholding of the group.

At the meeting, shareholders approved the final dividend payment of 8.5 sen per share.

In addition to the interim dividend of 5.5 sen per share paid in October 2012, the total dividend paid to shareholders in respect of the 2012 financial year amounted to 14 sen per share, totalling RM310 million.

The dividend payout represents 64 per cent of profit after tax, which is higher than the 50 per cent payout as promised in the prospectus in conjunction with FGV's initial public offering.

The dividend payment will benefit more than 100,000 shareholders, including most of Felda's 112,635 settlers who are indirect shareholders through the Settler Trust Fund set by authority.

Asked whether FGV was involved in open burning which caused the haze situation in the country, he said: "The company is not involved. FGV practises zero burning."