AGM Statement

RNS Number : 4566G

M. P. Evans Group PLC

06 June 2013

 



M.P. EVANS GROUP PLC

("Group" or "M.P. Evans")

ANNUAL GENERAL MEETING

The annual general meeting of M. P. Evans Group PLC ("the Group") is being held in London today.  The following statement, presenting an update on trading conditions and progress on the Group's activities since the publication of the annual report in late April, is being given at the meeting by the chairman, Peter Hadsley-Chaplin:-

1)    Indonesian palm oil

a)    Crops and extraction rates

As expected, the upward trend of crops of oil-palm fresh fruit bunches ("f.f.b.") continued with 132,300 tonnes being harvested in the first five months of 2013 (2012 114,600 tonnes) on the majority-owned estates.  This represented an increase of 15%.  This trend of increasing crops is expected to continue and, as referred to in my statement in the 2012 annual report, the board anticipates that Group crops will amount to around 500,000 tonnes in 2015.

The increase in crops originates from the age profile of the new projects in Kalimantan and Bangka and these increases will continue after 2015 and more so as the recently-commenced Musi Rawas project starts producing f.f.b.  The crops for the first five months of 2013 from these projects in Kalimantan and Bangka amounted to 59,100 tonnes, a 70% increase over that achieved (34,800 tonnes) in the same period in 2012.

Up to the end of May 2013, the f.f.b. crop in North Sumatra was at 73,200 tonnes, some 8% lower than the 79,800 tonnes recorded for the same period last year.  As in the past, crops are expected to be higher in the second half of the year and the shortfall against last year mentioned above is expected to be reduced.

Extraction rates continue successfully at the Kalimantan and North Sumatran mills, where 25% and over 24% respectively have been achieved in the first five months of 2013.  Oil quality remains high.

b)    Prices

Following the sharp reduction in palm-oil prices in the second half of 2012, the level remained between US$800 and 850 per tonne (Rotterdam c.i.f.) during the first five months of 2013 and currently is at the top end of that range.  Lower-than-expected crops, a reduction in Malaysian stock levels and an unusually-wide discount to the soybean-oil price have contributed to the slight strengthening of the price.

c)    Musi Rawas project

Work has commenced in agreeing compensation terms with some of the users of the land and it is expected that planting will commence in 2014.

2)    Australian beef cattle

As announced on 13 May 2013, the controlling shareholders in The North Australian Pastoral Company Pty Limited ("NAPCo") are considering their strategic options in relation to their shareholdings.  As part of that review, third parties are being approached to gauge interest in acquiring a majority stake in NAPCo.  The Group, as NAPCo's second largest shareholder, has stated that it will sell its shares if an acceptable proposal was to result from this process.  The process is still in its early stages.

Cattle prices have weakened since the year end as some parts of Australia have experienced dry conditions.  Woodlands, however, received good rains in the early part of the year resulting in good pasture and forage-crop growth.  The herd has returned to above 10,000 head, approximately half of which are being fattened on behalf of third parties for a fee per kilogram of weight gained.

Some NAPCo properties have received rain whilst others have remained dry.  The expanded feedlot has, as it was designed to do, proved useful in fattening cattle from properties where pastures have not benefited from rain.

3)    Malaysian property

Land sales and property development continue at Bertam Properties Sdn. Berhad.  The land bank remains a very valuable asset.

4)    Financial position

Positive cash flows enable the Group to continue with its substantial capital-expenditure programme.  The Group continues to have a strong balance sheet.

6 June 2013

Enquiries:

M.P. Evans Group PLC	Telephone: [phone]
P E Hadsley-Chaplin - chairman
P A Fletcher - managing director
T R J Price - finance director
Peel Hunt LLP	Telephone: [phone]
Dan Webster
Matthew Armitt
Richard Brown
Hudson Sandler	Telephone: [phone]
Charlie Jack
Katie Matthews

 

END

 

 

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