PETALING JAYA: Felda Global Ventures Holdings Bhd’s (FGVH) net loss for third quarter of financial year 2016 (3QFY16) widened to RM94.86mil, driven by a 57.7% lower profits registered by all five segments of FGVH.
In a filing with Bursa Malaysia, the company financial results showed that although administrative expenses went down by 32% to RM194mil compared to 3QFY15 and other operating costs were reduced by 67% to RM8.7mil, the reductions were not sufficient to offset the loss due to share of results from joint ventures which surged by a whopping 525% on-year, to RM62.3mil.
Year to date, FGVH also registered a net loss of RM98mil, putting the company in the red. FGVH’s slide in performance has been largely catalysed by lower CPO production, higher raw sugar costs, lower earnings from downstream segment and losses incurred by jointly controlled entity.
Year to date, the company’s palm upstream segment’s profit increased by 32.8% to RM136.5mil, primarily due to the cost savings initiatives undertaken by the group. However, the palm downstream segment recorded a loss of RM6.76mil due to weak margins in refined, bleached and deodorised palm kernel oil (RBDPKO) and crude palm kernel oil (CPKO).
FGVH’s revenue fell to RM4.2bil in 3QFY16, reduced by 7.1% on a year-on-year comparison. On a year to date basis, the revenue for the group increased by 5.9% to RM12.1bil.
Loss per share widened by 189% to 2.60 sen and no dividend has been paid during the quarter ended 30 September 2016.
The company noted that it expects the performance of the group to be challenging for the current financial year with another quarter to close the year. FGVH’s board of directors expects the group to record a loss for the full financial year, amid the slower global growth and the volatility of the currency market arising from the strengthening of US dollar.