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

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.

investors don't need IB recommendation to sell FGV, everyone knows it

Felda Global Ventures gets 50.25% of Pontian shares

Felda Global Ventures Bhd's (FGV) takeover of Pontian United Plantations Bhd has become unconditional after FGV received acceptances for 50.25% of Pontian's paid-up.

According to TSH on Monday, FGV had received valid acceptances for 4.345 million Pontian shares.

TSH is selling its entire 1.398 million shares of Pontian, which is held by its unit Bisa Jaya Sdn Bhd, to FGV for cash consideration of RM140 a share.

"The proposed disposal is deemed completed pending full payment of the cash consideration by FGV which shall be made within seven days from the date the Pontian shares acquired by FGV pursuant to the offer are registered in the name of FGV or its nominees," it said.

To recap, TSH had agreed to sell its 16.17% stake in Pontian to FGV for RM196mil cash which would see it netting RM86mil.

The agreed upon price for the plantation company - which owns 16,188ha of plantation landbank, mostly in Kinabatangan and Lahad Datu, plus a CPO processing mill with capacity of 90-metric-ton an hour - is RM140 per Pontian share.

However, the offer from FGV is conditional and will only be valid if it receives more than 50% of Pontian's shares.

Today closed (5/9/13) at rm4.16, the lowest since IPO

Key Statistics for FGV

Current P/E Ratio (ttm) 16.0070
Estimated P/E(12/2013) 22.2995
Relative P/E vs. FBMKLCI 0.9854
Earnings Per Share (MYR) (ttm) 0.2605
Est. EPS (MYR) (12/2013) 0.1870

http://www.bloomberg.com/quote/FGV:MK

Today (19/9/13) closed at RM4.35, up 7c

HWANGDBS gave of TP rm4.60 for FGV

IB report TP cannot follow 100%, sometimes It's too over rated

If not mistaken Retail investor got discount, pay only rm4.45?

IPO price for Retail is rm4.45, institutional investors paid rm4.55

I also applied, but didn't get any

but lucky oh, now see the price

expensive lesson learned

FGV acquires 100 pct of Pontian United for RM1.204 bln

Felda Global Ventures Holdings Bhd (FGV) has successfully secured acceptances to acquire a 100 per cent equity in Pontian United Plantations Bhd, as part of plans to expand its plantation landbank.

The total cash consideration for the acquisition amounted to RM1.204 billion.

President and Chief Executive Officer Mohd Emir Mavani Abdullah said the acquisition would increase the company's crude palm oil (CPO) production by about 80,000 metric tonnes per annum.

"The group will also benefit from the synergies derived from the operations of both Pontian and FGV's estates in Sabah," he said in a statement to Bursa Malaysia today.

Through its associate Felda Holdings Bhd, FGV is currently the largest CPO producer in the world, producing some 3.3 million metric tonnes in 2012.

Pontian’s plantation land is fully planted and located primarily in the Kinabatangan and Lahad Datu regions in Sabah.

Its land is also within the proximity of Felda Sahabat estates and FGV Group’s refinery in Lahad Datu, which will create synergy and improve the efficiency of operations.

FGV cannot promise higher dividend this year due to bearish CPO prices

FGV president and chief executive officer Mohd Emir Mavani Abdullah said this is because most companies are showing negative outlook in their balance sheets.

“Not only FGV but I think all companies are affected by the CPO prices.

“It will affect us and everybody else, we are in the same boat actually,” he said this on the sidelines at a media briefing today.

Mohd Emir was responding to questions if there was a possibility of FGV maintaining high dividend payouts despite the falling CPO prices, as it has a dividend policy of paying at least 50% of its profits.


MIDF Research in a note recently stated that more than 60% of FGV’s earnings come from the plantation business which was tied to the volatility of CPO price.

This post has been edited by davinz18: Oct 3 2013, 06:41 PM

FGV to buy 51% of Felda Holdings for RM2.2bil

Felda Global Ventures Bhd (FGV) has proposed to buy 51% of Felda Holdings Bhd for RM2.2bil as it seeks to have complete control over the entire plantation chain.

FGV said on Friday it would buy the stake, comprising of 112.19 million shares from Koperasi Permodalan Felda Malaysia Bhd for RM2.2bil cash.

“This represents a purchase consideration of approximately RM19.61 per Felda Holdings share based on the issued and paid-up share capital of Felda Holdings as at Sept 30, 2013,” it said.

FGV said the proposed acquisition would enable it to have complete control of the entire plantation value chain and to attain operational efficiency as well as to achieve synergies within the plantation value chain of the FGV group of companies.

Felda, Sime in RM300 million bio-refinery project in JB

A second generation bio-refinery, Malaysia’s first big-scale biomass facility, will be built in Johor Bahru for RM300 million–RM400 million by MyBiomass Sdn Bhd.

MyBiomas is a joint venture initiated by the Malaysian Industry-Government Group for High Technology (MIGHT) with FELDA and Sime Darby.

“We’re planning for this facility at the moment – we are hoping to have the facility in operation by end of 2016,” said R. Puvaneswari, chief executive officer of MyBiomass Sdn Bhd.

The biomass industry is expected to generate RM100 billion by 2025.

Interim Dividend of 6 sen per ordinary share, under single-tier system

EX-date 10/12/2013
Entitlement date 12/12/2013
Payment date 27/12/2013


Last Done Price rm4.450 (-0.010) - 27 Nov 2013

what happen? suddenly went up today now just above IPO price of 4.45

I think EPF started to buy again after selling off big amount last week

the broker fee small matter only. who knows they get some special "discounts" for "big" transaction