Felda Global Ventures Q2 earnings up 71.3% to RM322.7m (Update)

by **Cals** Fri 30 Aug 2013, 02:11

Published: Thursday August 29, 2013 MYT 5:49:00 PM
Updated: Thursday August 29, 2013 MYT 6:07:47 PM
Felda Global Ventures Q2 earnings up 71.3% to RM322.7m (Update)

KUALA LUMPUR: Felda Global Ventures Bhd (FGV) reported a strong set of earnings of RM322.71mil in the second quarter ended June 30, 2013 from the RM188.36mil a year ago.
FGV said on Thursday profit before zakat and tax (PBT) soared by 77.1% to RM527.99mil from RM298.12mil. Its revenue fell 15.4% to RM2.991bil from RM3.536bil while earnings per share were 8.80 sen compared with 9.4 sen.

"The profit before taxation margin after fair value changes in land lease agreement liability was RM527.99mil, higher than that of the preceding quarter of RM216.20mil.

"Lower profits were recorded by all segments except for sugar where profits achieved were 45.9% better than the preceding quarter," it said.

(Fair value changes for the LLA liability has been measured based on assumptions made on discount rate, crude palm oil prices, fresh fruit bunches prices, palm kernel prices, average yield of fresh fruit bunches, inflation rate, total acreage of planted oil palm and rubber, estate replanting fixed cost and capital expenditure; amongst others, on a periodic basis.)

For the first half, its earnings rose 20.7% to RM459.43mil from RM380.53mil while revenue rose 7.9% to RM5.673bil from RM5.256bil.

During the six months, FGV recorded higher fresh fruit bunches (FFB) of 2.46 million tonnes from 2.33 million tonnes a year ago.

"FFB yield increased to 9.53 tonnes per hectare compared to 8.95 tonnes per hectare, while crude palm oil (CPO) production increased to 1.44 million from 1.38 million in the corresponding period of 2012," it said.

However, profit fell 60.8% on-year to RM261.06mil due to lower average crude palm oil price (CPO) price of RM2,279 per tonne against RM3,230 per tonne a year ago. FFB average price also fell to RM434 per tonne in 2013 from RM623 per tonne in 2012.

As for its sugar business, FGV said it recorded an increase of 32.4% to RM220.23mil, aided by higher exports despite lower refined sugar prices for export markets and lower subsidy claimed per tonne.
"The downstream segment generated a profit of RM3.24mil compared to losses of RM39.21mil last year due to an improved contribution from the group's oleochemical business and better margins from its local downstream activities," it said.