ReutersReuters

Malaysia's FGV posts smaller third quarter profit

Malaysian palm oil planter FGV Holdings FGV on Wednesday logged a smaller third quarter profit, and pegged fourth quarter palm oil prices to average 4,000 ringgit per tonne.

Net profit during the July-September period fell to 241.7 million ringgit ($54.06 million), compared to a profit of 399.4 million ringgit in the same quarter last year.

Revenue jumped 16% to 6.18 billion ringgit ($1.38 billion) due to higher crude palm oil prices.

Outlook for Malaysia's plantation sector is expected to remain resilient in the fourth quarter, FGV, the world's largest crude palm oil producer said in a bourse filing.

Increased crude palm oil (CPO) supply from seasonally higher output of palm fruit bunches as well as stockpiles in exporting countries such as Indonesia may continue to put downward pressure on palm oil prices, FGV said.

FGV forecast CPO prices to average around 4,000 ringgit ($894.65) per tonne in the fourth quarter of 2022.

The benchmark futures contract on the Bursa Malaysia FCPO1! traded at 4,212 ringgit ($942.07) a tonne on Wednesday afternoon.

Prices of the edible oil FCPO1! soared to record highs earlier this year after Russia's invasion of Ukraine disrupted sunflower oil shipments tightened global supply.

But prices have since May slumped and are on course for the first annual decline in four years, particularly after Indonesia eased earlier restrictions on exports.

FGV forecast 2022 production at 18.3 million tonnes, virtually unchanged from 18.1 million tonnes last year.

($1 = 4.4710 ringgit)

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