AGM Statement

RNS Number : 2564R

Anglo-Eastern Plantations PLC

29 June 2020

 

29 June 2020

Anglo-Eastern Plantations Plc

("AEP" or the "Company")

AGM Statement

The 35th Annual General Meeting of Anglo-Eastern Plantations Plc will be held at the Company's office in Malaysia at 7^th Floor, Wisma Equity, 150 Jalan Ampang, 50450 Kuala Lumpur, Malaysia at 4.30pm (Malaysia time) today.

Anglo-Eastern Plantations Plc announces today, prior to its AGM in Malaysia, reporting on its current operational performance and development as well as the outlook for the remainder of 2020.

Operational and financial performance

For   the first five months ended 31   May   2020, our own production of fresh fruit bunches ("FFB") was 413,100mt, an increase of 5% compared to the same period in 2019 (five months to May 2019: 392,000mt). Higher crop production was observed in Bengkulu and some parts of North Sumatera as the trees recovered from moisture stress . FFB bought in was 342,200mt, a marginal increase in comparison with the same period last year (five months to May 2019: 340,600mt). Total Crude Palm Oil ("CPO") produced was 154,100mt, 3% higher than the corresponding period in 2019 (five months to May 2019: 149,100mt) .

The CPO ex-Rotterdam price averaged $659/mt for the first five months to   31 May 2020, 24% higher than the average price of $531/mt recorded   in the first five months of 2019.

AEP's balance sheet remains strong.

Development

AEP has plantations across Indonesia and Malaysia, amounting to some 128,200 hectares, of which approximately 72,300 hectares (including Plasma) are planted. The Group's new planting for the first five months ended 31 May 2020 was 995 hectares (including plasma) (five months to May 2019: 667 hectares).

Earthworks for the seventh mill in North Sumatera have been completed. The next stage of construction involving civil & structural works is likely to be delayed due to the travel restrictions imposed in Indonesia to contain the spread of Coronavirus. The fourth biogas plant for the mill in North Sumatera has been completed in Q1 2020 and is now fully operational. The inspection and certification by local authorities before the plant can upload electricity produced onto the national grid is similarly delayed by the virus pandemic.

Outlook

The CPO price ex-Rotterdam closed at $576/mt on 2 June 2020, representing a 34% decrease from the start of the year at $878/mt. Palm oil prices remain volatile. Whilst the CPO price may recover as major palm oil consuming countries gradually emerge from economic lockdown, the indications are that the Coronavirus pandemic is likely to cause a worldwide recession which could have an adverse impact on the consumption and usage of palm oil even if economic activities are improving.

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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