CPO Export levy update

RNS Number : 3330F

M. P. Evans Group PLC

18 March 2022

 

M.P. EVANS GROUP PLC

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

INDONESIAN GOVERNMENT ANNOUNCES REVISIONS TO EXPORT LEVY

M.P.Evans Group PLC, a producer of sustainable Indonesian palm oil, announces revisions made by the Indonesian government to its palm-oil export levy following the recent record-high prices. These will take immediate effect (see Annex) and result in an increase in the export levy of up to US$200 per tonne, dependent on the reference price of crude palm oil ("CPO") used, which is closely linked to the cif Rotterdam price. The Indonesian government had recently introduced a domestic market obligation ("DMO") to subsidise local palm-oil supplies, but this is being withdrawn and replaced with the revised levy.

It is not entirely clear to what extent the DMO had already resulted in downward pressure on mill-gate prices. However, following its withdrawal and the introduction of the revised levy, the Group continues to receive strong pricing for its CPO. US$1,080 per tonne was achieved for a tender today, similar to pricing achieved just before the levy's introduction and significantly higher than the 2021 average of US$810 per tonne. Management continues to monitor the situation closely.

The Group will be announcing its 2021 results on Tuesday 22 March.

18 March 2022

Enquiries:

M.P. Evans Group PLC	Telephone: [phone]
Peter Hadsley-Chaplin - chairman
Matthew Coulson - chief executive
Peel Hunt LLP (Nomad and joint broker)	Telephone: [phone]
Dan Webster
Andrew Clark
Lalit Bose
finnCap (Joint broker)	Telephone: [phone]
Tim Redfern
Harriet Ward
Hudson Sandler (Financial PR)	Telephone:  [phone]
Charlie Jack
Elfie Kent

ANNEX

Reference price					Net price at top of	Net price under prior
From	To	Levy	Tax	Total	band	structure
0	750	55		55	695	695
751	800	75	3	78	722	722
801	850	95	18	113	737	737
851	900	115	33	148	752	752
901	950	135	52	187	763	763
951	1,000	155	74	229	771	771
1,001	1,050	175	93	268	782	782
1,051	1,100	195	116	311	789	809
1,101	1,150	215	144	359	791	831
1,151	1,200	235	166	401	799	859
1,201	1,250	255	183	438	812	892
1,251	1,300	275	200	475	825	925
1,301	1,350	295	200	495	855	975
1,351	1,400	315	200	515	885	1,025
1,401	1,450	335	200	535	915	1,075
1,451	1,500	355	200	555	945	1,125
1,501		375	200	575

 

END

 

 

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