22.07.2020 (www.theedgemarkets.com) - KUALA LUMPUR (July 22): Oil palm planter Riverview Rubber Estates Bhd’s fresh fruit bunch (FFB) production hit the 7,000-tonne mark in June for the first time since 2016.
The group’s June output stood at 7,726.23 tonnes, up 64.36% from 4,700.66 tonnes recorded a year earlier, the firm said in its monthly production figures filing with Bursa Malaysia today.
Besides June, Riverview also saw an increase in FFB production in March and May, which went up 5.92% and 8.75% respectively, compared with the corresponding months in 2019.
These boosted the group’s total FFB production in the first half of the year (1H20) to 31,996.61 tonnes — its highest for the six-month period since 2018.
The 1H20 figure was 5.87% and 25.51% higher than 30,221.15 tonnes and 25,492.95 tonnes recorded for 1H19 and 1H18 respectively.
The group’s higher FFB production came amid rising demand for palm oil globally as importing countries, particularly India and China, started to restock their supply, according to news reports.
UOB Kay Hian Research in a note last week said that crude palm oil (CPO) production in Malaysia is expected to top 20 million tonnes this year, citing a better yield as last year’s dry spell is over.
The research note also quoted Godrej International veteran industry analyst Dorab Mistry as saying that the high cycle of Malaysian production started in March and is expected to continue all the way until November.
Riverview is primarily engaged in the cultivation of oil palm on plantations in Peninsular Malaysia. The group operates through two segments, namely plantations and property.
At the noon break, the firm’s share price settled unchanged at RM2.78, giving it a market capitalisation of RM180.28 million.