Tony Pua had on 28 October 2014, told the reporters at Parliament that Felda Global Ventures Holdings Bhd (FGV), the world's third largest oil palm plantation operator, was the worst performer of all plantation stocks listed on Bursa Malaysia. He had even asked the government to sack and replace the top brass of FGV for the poor performance of its share price. DAP national publicity secretary and Member of Parliament for Petaling Jaya Utara, Tony Pua cited data as at Oct 15, 2014, which showed FGV’s share price dropping by 29.1% compared with its peers – IJM Plantations Bhd (-6.3%), IOI Corp Bhd (-2.7%), Genting Plantations Bhd (-9.4%) and Sime Darby Bhd (-1.6%).
For Mr Tony's information, investment in the so-called plantation companies like FGV are meant for long term as plantation gestation period is long in nature. ever since the IPO in June 2012, FGV have recorded continuous growth in term of revenue, profit and dividend that FGV paid to our shareholders. For the record, for the year ended 31 December 2013, FGV continued to make solid progress despite a challenging operations environment. FGV posted a profit after tax of RM1.1 billion, a 30.2% increase from Year 2012. How come Mr Tony accuse FGV as "poor performance"?
Maybe Mr Tony was not made aware that FGV paid a total RM0.16 per share or RM583.7 million which represent 60% of Net Profit after Non-Controlling Interest. This is 20% higher than what was promised and documented in FGV's IPO prospectus that was distributed to all prospective and current shareholders. In this context, don't you think FGV's dividend policy is one of the best in the country, Mr Tony?
Dear Mr Tony, I think you should know by now to compare apple to apple. Its not fair you compare apple to orange or even worst the durian. There is no exact comparison to FGV in the market. Sime Darby, IOI, IJM and KLK have difference revenue streams. Those companies are not a pure plantation company like FGV which reflect FGV strong correlation to the world CPO price. You know Tony, to some extent, the drop in CPO price can be seen as a blessing in disguise for FGV and its shareholders. Why? This is because FGV's loss of revenue from the current replanting program would be minimum as the current CPO price is low.
Your Honor, I rest my case ... err ... What's up Doc?