With the demerger and relisting of IOI Properties on Jan 15 2014, IOI Corp has become one of the world’s largest vertical integrated palm oil producers. Its businesses include producing FFB and speciality fats, and processing oleo chemicals. This vertical integrated business model allows products and services offered externally and consumed along the value chain to gain further value before reaching end consumers.
IOI Corp as Malaysia fourth largest plantation company, currently (July 2014) owns and operates 91 oil palm estates and 14 palm oil mills with annual milling capacity of 4.4 million tones of FFB.
As of March 2014 the company’s total planted area reached 172140ha of which 150643ha consist of mature oil palm trees. About 66% of its oil palm plantation land bank is located in Sabah and Sarawak, 27% in Peninsular Malaysia and the remaining in Indonesia.
IOI Corp also owns a 31.3% stake in Bumitama Agri Ltd, a Singapore listed plantation group with 115000ha of planted land.
Despite losing income from the property division after the demerging exercise and the unattractive tree age profile currently (July 2014), IOI corp is still one of the most efficient and respected integrated palm oil players in Malaysia.
It has one of the highest FFB yields among stocks with 24.46 tones against its peers and industry’s yield of 19 tones.
No comments:
Post a Comment