FGV Annual Integrated Report 2019

55 ANNUAL INTEGRATED REPORT 2019 03 S E C T I O N TRADING BUSINESS Our Trading business is one of the lead revenue contributors to the Group, delivering high volumes of bulk vegetable oils, processed palm oil and lauric oils to local and export markets. The business sells and trades some 3 million MT of palm products annually. We are a one-stop centre for bulk products, from planning to delivery to buyers, managing the end-to-end spectrum of the supply chain, and with a good reputation as a supplier of high-quality and sustainable oils. Our team comprises experienced traders and we continue to nurture our existing markets while venturing into new ones to accelerate growth. OUR SERVICES INCLUDE: • Product specification consultation • Sales & purchase planning • Freight on board and cost net freight shipment to export buyers • Ground transport for local delivery • Shipping documentation management Palms • Crude Palm Oil • Processed Palm Oil Including Refined, Bleached, Deodorised (RBD) Palm Oil, RBD Palm Olein, RBD Palm Stearin, Palm Fatty Acid Distillate Laurics • Palm Kernel • Crude Palm Kernel Oil • RBD Palm Kernel Oil • Palm Kernel Fatty Acid Distillate • Palm Kernel Expeller Biodiesel and its Products • Palm Methyl Ester • Glycerine For products such as: Premium Quality Oil • The introduction of Premium Quality (PQ) CPO with free fatty acids (FFA) content of lower than 1.5%. • This not only lowers refining costs, but also produces high-quality food-grade products. • In 2019, FGV produced 1,980 MT of PQ oil. Renewable Energy • FGV has 30 biogas plants in total. As of now, 11 plants are certified as Feed-In-Tariff projects with total exported capacity of 15.4 MW. • Two biogas plants in Sabah are involved in rural electrification while one in Sarawak powers mill housing, with total exported capacity of 2.2 MW and 0.6 MW respectively. • The Group also operates world’s first palm-based bio-compressed natural gas plant, with production capacity of 60,000 MMBTU/year. • FGV produces varieties of by-products such as palm kernel shells (PKS), sludge oil, shredded EFB and EFB among others. • 7.5 MW Biomass power plant located in Sahabat in Sabah supplying steam and electricity for our refinery, kernel crushing plant, bulking installation and a small township, Desa Kencana. UPSTREAM KEY HIGHLIGHTS The Upstream business continues to undertake further initiatives to add value to our Manufactured Capital. These include: By-products: 1. PKS 2. Sludge oil 3. Shredded EFB 4. Bunch Ash 5. Mesocarp fiber 6. EFB FFB Produced Main products: 1. CPO 2. PK Turnaround of Rubber Business • Our Rubber operations completed a successful turnaround of the business, recording RM3.20 million profit in 2019 for our Malaysian operations compared to a loss of RM30.58 million in 2018. MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS