Value Creation Is The Bedrock Of Our Business 68 FGV HOLDINGS BERHAD During the year, the LO Sector’s profit increased by 16% to RM104 million from the RM90 million recorded in the previous year. The Bulking and Transport Divisions played a significant role in driving the Sector’s growth, as both Divisions contributed 31% growth in profits. This was due to the higher volume of premium oils and higher throughput handled by the Bulking & Storage Division, as well as the higher tonnage carried by the Transport Division, in line with higher CPO production. Another factor that contributed to the Sector’s improved profitability was its intensified Cost Control Programme (CCP), that has resulted in significant cost savings. Group Business Review From left • Abdul Halim Ab Wahid - Senior General Manager (Special Projects), LO Sector • Omar Affan - Head, Strategy & Business Development, LO Sector • Abdul Rasheed JanMohammed - CEO, FWQ Enterprises PVT (LTD) • Jainal Ismail - CEO, FGV Transport Services Sdn Bhd • Fakhrunniam Othman - Group Divisonal Director, LO Sector & Officer-In-Charge, FGV Prodata Systems Sdn Bhd • Kamaradin Selamat - CEO, FGV Johor Bulkers Group of Companies • Mohd Izam Pariz Zamri - Group Accountant, LO Sector • Amirul Hadi - CEO, Felda Travel Sdn Bhd OPERATIONAL PERFORMANCE BULKING & STORAGE Overview Our Bulking & Storage Division has over 45 years of experience in storage operation and operates one of the largest and most advanced storage facilities for edible oils and dry cargo globally, with a total capacity exceeding 1 million MT. Additionally, the Division has 12 strategically located terminals throughout Malaysia and Pakistan. Our storage facilities have also been approved by Bursa Malaysia Securities Berhad to manage Port Tank Installations in Pasir Gudang and Port Klang for CPO, and Crude Palm Kernel Oil (CPKO) and extended CPO futures trading in Lahad Datu. In the year under review, through our subsidiary, FGV Johor Bulkers (FGVJB Group), we have recorded a total throughput handled of 8.36 million MT, 2% higher than the 8.21 million MT in 2021, which was contributed by higher long-term throughput from external customers, in line with the higher volume of CPO produced as crop production recovered nationwide. Additionally, the higher volume of premium oils handled, such as oleochemicals also contributed to this positive improvement. As a result, the storage tank turnover rate rose to 8.37 times, as compared to 8.15 times the year before. RM254 million REVENUE* 2021: RM210 million 2021: RM80 million RM110 million PBT RM307 million REVENUE* 2021: RM245 million 2021: RM11 million RM9 million PBT * The revenue in the Bulking and Transport Divisions included both external and internal revenues. BULKING & STORAGE TRANSPORT
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