KUALA LUMPUR (Nov 27): FGV Holdings Bhd (KL:FGV), Malaysia’s largest producer of palm oil by volume, nearly tripled its net profit in the third quarter thanks to higher output and prices that may stay high in the remaining months of 2024.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) came in at RM87.16 million, FGV said in an exchange filing. The average crude palm oil price achieved was up 2.6% year-on-year to RM3,980 per tonne while fresh fruit bunch production grew 20% to 1.2 million tonnes.

Revenue surged 26% to RM6.18 billion when compared to the same quarter last year. The company did not declare any dividend.

While output peaked in the third quarter, prices remained elevated amid rising crude oil prices and concerns over reduced output, FGV noted.

“Against this backdrop, the plantation division is intensifying its yield enhancement efforts, focusing on efficient crop recovery, loose fruit collection and estate mechanisation,” the company said.

For its first nine months, the company recorded a fivefold jump in net profit to RM160.05 million while revenue was RM16.24 billion, a 16% rise when compared to the same period last year.

Apart from oil palm plantation, the company also processes and manufactures palm oil-based products, which account for 75% of its annual revenue. Its oils-and-fats division recorded a lower profit from reduced margins in the bulk commodities and in the chemical segments.

The sugar division, however, reported smaller losses in the January-September period thanks to higher overall average selling prices, increased sales volume and incentives received for certain packed sugar sold in the domestic market as well as better capacity utilisation.

Going forward, “our priorities are focused on revenue opportunities and operational efficiency,” said chief executive officer Fakhrunniam Othman in a statement.

Shares of FGV closed unchanged at RM1.15 on Wednesday, giving the company a market capitalisation of RM4.2 billion.