Mills crucial for future profits

FGV is also probably the largest third party palm oil miller in the country.

PETALING JAYA: The future profitability of FGV Holdings Bhd’s milling division will hinge on the spot crude palm oil (CPO) price premium against CPO future prices, as well as the oil extraction rate (OER) of its mills.

This was deduced by CGS-CIMB Research after an update with the FGV management on the reason behind the planter’s lower earnings from its milling operation, particularly on the processing of external fresh fruit bunches (FFB).