IOI Corp expects single-digit CPO growth in FY27

PUTRAJAYA: IOI Corp Bhd is anticipating a modest increase in its crude palm oil (CPO) production for the financial year ending June 30, 2027 (FY27). Group CEO Datuk Lee Yeow Chor stated that the growth in production is anticipated to be within a single-digit percentage range. This growth is attributed to higher fresh fruit bunch (FFB) yields and oil extraction rates (OER).

Lee also highlighted that the younger, more mature oil palm trees in IOI Corp plantations are entering a more productive phase. He reassured that Malaysia, where the majority of IOI Corp's plantations are situated, has not faced severe drought conditions despite concerns over the El Nino phenomenon. However, he noted that some areas experienced relatively dry weather for a brief period in August, but overall rainfall remained normal and healthy.

The potential impact of El Nino on Indonesia, where the group's plantations account for about 12% of its total area, could take time to manifest, but eventually, it might affect production. Lee expressed confidence that IOI Corp's environmental, social, and governance (ESG) credentials will not be adversely affected by Singapore's investigation into plantation companies over transboundary haze concerns.

He mentioned that Singapore authorities have clarified no company has been accused of wrongdoing and that assessors will evaluate whether plantation companies have implemented adequate fire prevention and firefighting measures.