KUALA LUMPUR, Nov. 29 (Xinhua) -- Malaysia-based FGV, saw its net profit plunge in the third quarter ended Sept. 30 due to lower CPO prices.
FGV said in a bourse filing on Wednesday that its net profit for the quarter tumbled 86.77 percent to 31.98 million ringgit (6.87 million U.S. dollars) from 241.67 million ringgit a year ago.
The group's revenue for the quarter also fell 20.63 percent to 4.91 billion ringgit from 6.18 billion ringgit.
According to the group, the poor performance was due to a weaker average CPO price of 3,948 ringgit per ton against 4,989 ringgit per ton a year ago. This was further compounded by higher CPO production costs ex-mill by 35 percent.
Although production costs are expected to remain elevated, a potential moderation is foreseen by the group due to lower fertilizer and energy prices. (1 ringgit equals 0.21 U.S. dollar) ■
