AGM Statement

RNS Number : 1731D

Anglo-Eastern Plantations PLC

24 June 2019

 

24 June 2019

Anglo-Eastern Plantations PLC

("AEP" or the "Company")

AGM Statement

The 34th 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.

At the meeting, the Chairman will comment on current operational performance and development as well as the outlook for the remainder of 2019.

Operational and financial performance

For the first five months ended 31 May 2019, our own production of fresh fruit bunches ("FFB") was 392,000mt, a decrease of 5% compared to the same period in 2018 (five months to May 2018: 411,100mt). Lower crop production observed in Riau and Bengkulu was similarly experienced by other planters. Harvesting in Indonesia was also interrupted by the Presidential election and a higher number of public holidays in April and May 2019. FFB bought in was 340,600mt, a 12% decline in comparison with the same period in 2018 (five months to May 2018: 388,800mt). External crop purchases were lower consisitent with lower crop production by other planters in the first half of 2019. Total Crude Palm Oil ("CPO") produced was 149,100mt, 9% lower than the corresponding period in 2018 (five months to May 2018: 163,880mt).

The CPO ex-Rotterdam price averaged $531/mt for the first five months to 31 May 2019, 20% lower than the average price of $667/mt recorded in the first five months of 2018.

AEP balance sheet remains strong.

Development

AEP has plantations across Indonesia and Malaysia, amounting to some 128,200 hectares, of which approximately 70,400 hectares (including Plasma) are planted. The Group's new planting for the first five months ended 31 May 2019 was 667 hectares (including plasma) (five months to May 2018: 463 hectares).

Earthworks for the seventh mill in North Sumatera are still in progress amidst delay caused by high rainfall. The sinking and uneven settlement of soil at site have delayed the start of civil works. Meantime earthwork at the fourth biogas plant in North Sumatera is expected to be completed by end of second quarter of 2019.  

Outlook

The CPO price ex-Rotterdam closed at $496/mt on 11 June 2019, representing a 4% decrease from the start of the year at $517/mt. Palm oil prices are at a large discount to soybean oil, although it remains volatile. The Group expects the CPO price to remain soft due to likely higher output and inventories across the market.

Note: The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014.

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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