AGM Statement

RNS Number : 4692R

Anglo-Eastern Plantations PLC

29 June 2015

 



29 June 2015

Anglo-Eastern Plantations Plc

("AEP", the "Company" or the "Group")

AGM Statement

The thirtieth Annual General Meeting of Anglo-Eastern Plantations Plc, which owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 127,800 hectares producing mainly palm oil and some rubber of which approximately 64,230 hectares are planted, will be held at the offices of UHY Hacker Young LLP, Quadrant House, 4 Thomas More Square, London E1W 1YW at 11.00am today. At the meeting, the Board will make the following statement on the current operational performance and development as well as the outlook for the remainder of 2015:-

Operational and financial performance

For the first five months ended 31 May 2015, our own production of fresh fruit bunches ("FFB") was 311,950mt, a decrease of 1% compared to the same period in 2014 (five months to May 2014: 316,580mt). FFB bought in was 264,650mt, 5% higher in comparison with the same period in 2014 (five months to May 2014: 251,500mt). Total Crude Palm Oil ("CPO") produced was 111,400mt, 3% lower than the corresponding period in 2014 (five months to May 2014: 114,270mt) due to lower extraction rate.

CPO CIF Rotterdam price averaged $662/mt for the first five months to 31 May 2015, a decrease of 27% from the average of $903/mt recorded in the first five months of 2014.

AEP's balance sheet remains strong with the Company continuing to achieve positive cash flow generation. The Company's Long Term Development Loans totaled $34.8m at 31 May 2015 (at 31 May 2014: $35m).

Development

The Group new planting for the first five months was 760 hectares (five months to May 2014: 747 hectares). As indicated in the preliminary announcement on 30 April 2015 and the Interim Management Statement on 26 May 2015, new plantings remain behind schedule due to delays in finalising settlement of land compensation with villagers in Bengkulu, Bangka and Kalimantan. The Company is continuing with the somewhat protracted negotiations with the villagers' representatives, in full accordance with our obligations under Indonesian law, to achieve a fair and reasonable result for all parties.

The recently opened mill in Central Kalimantan has begun processing its own in-house crops with an initial capacity of 45mt/hr. The mill is presently running below its full capacity while rectifying the anticipated initial teething problems and to fine tuning its operation. We expect the mill to be performing at optimum capacity by September.

Outlook

The CPO price closed at $660/mt as at 15 June 2015, representing a 6% decrease from the start of the year. The CPO price tumbled to $610/mt in January 2015 due to lower import of CPO by India and China, the two largest consumers, amidst a glut of soya oil.

The return of El Nino weather phenomenon since 2010 as forecasted by the Australian Bureau of Meteorology could however lift the CPO price. The extend of El Nino if it happens will induce moderate to severe drought in palm oil producing regions resulting in lower yield and crop production.

We anticipate that CPO price will remain generally stable and the Board cautiously expects profitability and cash flow to remain in line with management forecasts for 2015.

For further enquiry, contact:

Anglo-Eastern Plantations Plc Dato' John Lim Ewe Chuan	[phone]
Charles Stanley Securities Russell Cook Karri Vuori	[phone]

 

END

 

 

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