AGM Statement

RNS Number : 2278S

Anglo-Eastern Plantations PLC

25 June 2018

 

25 June 2018

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

AGM Statement

The 33rd Annual General Meeting of Anglo-Eastern Plantations Plc will be held at the offices of UHY Hacker Young LLP, Quadrant House, 6^th Floor, 4 Thomas More Square, London E1W 1YW at 11am today. AEP owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 128,200 hectares producing mainly palm oil and some rubber of which approximately 68,600 hectares are planted.

At the meeting, the Chairman will comment on current operational performance and development as well as the outlook for the remainder of 2018.

Operational and financial performance

For the first five months ended 31 May 2018, our own production of fresh fruit bunches ("FFB") was 411,110mt, an increase of 10% compared to the same period in 2017 (five months to May 2017: 374,330mt). FFB bought in was 388,840mt, 6% lower in comparison with the same period in 2017 (five months to May 2017: 412,900mt). External crop purchases were lower as competition among new mills intensified in 2018. Total Crude Palm Oil ("CPO") produced was 163,880mt, 2% higher than the corresponding period in 2017 (five months to May 2017: 160,320mt).

The CPO ex-Rotterdam price averaged $667/mt for the first five months to 31 May 2018, 11% lower than the average price of $751/mt recorded in the first five months of 2017.

AEP's balance sheet remains strong with the Group continuing to generate positive cash flow.

Development

The Group's new planting for the first five months ended 31 May 2018 was 463 hectares (five months to May 2017: 809 hectares). As reported previously, and also in our 2017 Annual Report, new plantings remain behind schedule due to delays in finalising settlement of land compensation with villagers in South Sumatera, Bangka and Kalimantan. The villagers are seeking compensation beyond what the Group considers fair and reasonable resulting in protracted negotiations. Replanting of c.418 hectares of aging oil palm in North Sumatera which began in May 2018 should be completed by the year end.

The Biogas plant in Kalimantan has been completed. The remaining electrical works for a transmission line to connect to the national grid will start once the contract for power supply to the State Electricity Board is approved by the Ministry for Renewable Energy.

Earthwork on the seventh mill of 60mt/hr and a fourth biogas plant in North Sumatera has just started and is progressing well.

Outlook

The CPO price ex-Rotterdam closed at $665/mt on 11 June 2018, representing a 2% decrease from the start of the year. The Group expects the CPO price to be soft due to weak demand and likely higher output and inventories across the market.

For further enquiry, contact:

Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan	[phone]
Panmure Gordon (UK) Limited
Dominic Morley	[phone]

 

END

 

 

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