IOI Expects Limited Impact From El Nino on Palm Oil Production
By Ying Xian Wong
KUALA LUMPUR, Malaysia--Malaysian plantation company IOI Corp. expects the impact of El Nino on its palm oil production to be limited as most of its plantations are in Malaysia, where estates haven't been hit by droughts.
Although Indonesia has suffered droughts, the country's estates account for only about 12% of IOI's total plantation area, limiting the potential impact on its production, Chief Executive Lee Yeow Chor said in a press conference Wednesday.
IOI expects crude palm oil production to grow by a single-digit percentage in fiscal year 2027.
The company also expects CPO prices to remain supported at 4,500 ringgit-4,600 ringgit, equivalent to $1,103.59 to $1,128.12, a ton for the rest of the year, Lee added.
Separately, IOI recently partnered with Tenaga Nasional and a small and medium enterprises consortium to develop a 500-megawatt solar farm integrated with a 250MW/1,000MWh battery energy storage system in the state of Negeri Sembilan. Tenaga Nasional's unit will hold a 70% stake in the project, IOI's unit 25% and the SME consortium 5%.
IOI is assessing potential sites for more solar power projects, including two estates located near Tenaga Nasional's grid, Lee said.
The company is also in a healthy financial position and has room to take on more debt if suitable investment opportunities arise, Lee added.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
November 04, 2026 01:05 ET (06:05 GMT)
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