FELDA Global Ventures Holdings Bhd (FGV), the world’s largest crude palm oil (CPO) producer, has given an assurance that it will continue to pay dividends to shareholders even during this challenging economic conditions.
Its president and chief executive officer Datuk Mohd Emir Mavani Abdullah said FGV is operating more efficiently. Its operating expenses and cost of production have also improved.
“I want to tell my major shareholders, including the 112,635 settlers nationwide, that FGV will continue to provide dividends even during difficult times. The company is making money, not losing money.”
Today’s market environment has affected almost all commodity players, including FGV.
With commodity prices dropping, FGV is affected because its entire value chain is in oil palm, sugar and rubber, said Emir.
“FGV has not diversified into other sectors within the value chain and, of course, when commodity prices drop, it affects our entire business more than other commodity companies.
“The company has a diversification plan but it will again follow through the value chain of oil palm, sugar and rubber. The company is going further downstream into specialty products.”
FGV is very focused on its transformation project and diversifying its non-core businesses.
He added that the company is going into the production of tocotrienols and fatty acids.
The venture of high-tech carbon nanotubes products is also gaining momentum.
“The company is in discussions with major companies around the world on the use of graphene and nanochips in products. You will see that FGV’s 2020 target of the 65:35 ratio of its upstream and downstream will be achieved, and that will stabilise the company when commodity prices fluctuate,” added Emir.