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Plantation giant Felda Global Ventures Holdings Bhd (FGV) registered a revenue of RM4.51 billion in the third quarter ended Sept 30, 2015 (3Q15), up 13.8 percent from the RM3.96 billion recorded in the same period a year ago.

“The higher revenue was mainly due to the higher external crude palm oil (CPO) sales (despite lower CPO prices), and higher oil extraction rate in 3Q15 of 21.04 percent compared to 20.56 percent in the preceding quarter,” FGV said in a statement.

However, the company posted a pre-tax loss of RM62.43 million in 3Q15 against a pre-tax profit of RM162.33 million in the same quarter of 2014.

FGV attributed the pre-tax loss to the higher fair value charge in land lease agreement as well as higher nett realised and unrealised foreign-exchange losses.

Group president and chief executive officer Mohd Emir Mavani Abdullah said the CPO price has affected most plantation players and FGV has not been spared.

“Despite slumping to a six-year low in August 2015 and with supply surpassing demand, we have to be reminded that palm oil is a long-term play and a cyclical sector.

“Based on our forecast, we expect CPO to trade at RM2,300 to RM2,400 per tonne in the first quarter of 2016,” he added.

- Bernama

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