Update FGV 1H net profit falls 36% to RM295.5 mil, declares 6 sen dividend

by **Cals** Tue 26 Aug 2014, 09:40

Update FGV 1H net profit falls 36% to RM295.5 mil, declares 6 sen dividend

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Monday, 25 August 2014 18:50

KUALA LUMPUR (Aug 25): Felda Global Ventures Bhd (FGV) reported a 53% fall in its second quarter net profit ended June 30, 2014 to RM151.86 million or 4.2 sen a share, from RM322.71 million a year ago. Revenue for the quarter rose 36.5% to RM4.08 billion, from RM2.99 billion.

Both its plantation and sugar trading segments recorded lower profits during the quarter in review.

For its plantation segment, FGV attributed its lowered profits to fair value changes in its land lease agreement liabilities (LLA), which recorded a loss of RM217.7 million versus a gain of RM176.52 million previously.

For its sugar segment, the group said that profit fell 13.7% to RM190 million due to lower exports and domestic sales. It added that the sugar segment had also registered an unrealised loss in foreign currency of RM1.76 million, compared to unrealised gain of RM14.82 million previously.

Meanwhile, FGV’s group net profit for the six months ended June 30, 2014 also fell 35.7% to RM295.49 million, from RM459.43 million a year ago. Cumulative revenue for the six months rose to RM7.8 billion, from RM5.67 billion a year ago.

The group has declared a single tier dividend of 6 sen per share for the interim period, compared to nil in the previous corresponding period.

On prospects, FGV said that the market conditions and pricing of crude palm oil (CPO) are challenges being faced by the whole industry.