Trading Statement

RNS Number : 1962P

Anglo-Eastern Plantations PLC

15 November 2016

 

15 November 2016

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

Trading Statement

Anglo-Eastern Plantations Plc and its subsidiaries, which owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 128,600 hectares producing mainly palm oil and some rubber of which approximately 65,500 hectares are planted, today announces a trading update in respect of the period since 30 June 2016.

Operational and financial performance

For the first nine months ended 30 September 2016, our own production of fresh fruit bunches ("FFB") was 628,700mt, a decrease of 5% compared to the same period in 2015 (9M15: 660,500mt). FFB bought-in was 509,250mt, which represents a decrease of 4% in comparison with the same period in 2015 (9M15: 532,100mt). Total Crude Palm Oil ("CPO") produced was 235,350mt, 2% lower than the corresponding period in 2015 (9M15: 239,700mt) due to both lower FFB production and external FFB purchase.

CPO CIF Rotterdam price averaged $688/mt for the first nine months to 30 September 2016. This represents an increase of 9% from the average price of $630/mt recorded in the comparative period of 2015 and is above the price of $570/mt at the start of 2016.

The Group's balance sheet remains strong with the Company continuing to generate positive cash flow. The Company's Long Term Development Loans totalled $35.5m as at 30 September 2016 (3Q15: $34.75m). The Group had net cash of $72.7m as at 30 September 2016 (3Q15: $68.3m).

Development

The Group's new planting for nine months ended 30 September 2016 totalled 1,003 hectares, of which replanting made up 309 hectares. As reported previously the Group is facing difficulty in concluding land compensation settlement with villagers in Sumatera due to unreasonably high land prices. These negotiations are continuing and the Management is confident that some of these negotiations will be concluded successfully.

The construction of the two biogas plants for the mills in Bengkulu and Kalimantan are in the final stages of construction. Membranes have been installed to trap the biogas emitted from the palm oil mill effluents ("POME"). Various equipment are being progressively installed and should be ready by the end of the year. The biogas plants when completed are expected to generate a combined 3 Megawatt of electrical power. A surplus of 15.6 million kilowatt hour of electricity is projected to be generated which the Group intends to sell to the State Electricity Company. The mills will further reduce their reliance on fossil fuels and at the same time reduce the Group's carbon foot print.  

Outlook

CPO closed at the price of $770/mt on 11 November 2016, representing a 35% increase from $570/mt from the start of the year. The El Nino weather phenomenon which resulted in severe drought last year has reduced the FFB production in both Indonesia and Malaysia leading to a gradual increase in price.

The CPO price outlook for the remainder of the year should remain stable especially with the coming monsoon which is expected to disrupt FFB production.

For further enquiry, contact:

Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan	[phone]
Panmure Gordon
Andrew Godber	[phone]

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

 

END

 

 

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