TIDMAEP

RNS Number : 2361C

Anglo-Eastern Plantations PLC

27 June 2016

27 June 2016

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

AGM Statement

The fourteenth Annual General Meeting of Anglo-Eastern Plantations Plc, 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, 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 2016.

Operational and financial performance

For the first five months ended 31 May 2016, our own production of fresh fruit bunches ("FFB") was 314,260mt, an increase of 1% compared to the same period in 2015 (five months to May 2015: 311,950mt). FFB bought in was 201,160mt, which was 24% lower in comparison with the same period in 2015 (five months to May 2015: 264,650mt) due to intense competition from new mills. Lower crop production among smallholders due to the lingering effects of El Nino also contributed to the lower purchase of external crop. Total Crude Palm Oil ("CPO") produced was 108,510mt, 3% lower than the corresponding period in 2015 (five months to May 2015: 111,400mt) due to lower FFB processed.

CPO CIF Rotterdam price averaged $664/mt for the first five months to 31 May 2016, a marginal increase compared to the average price of $662/mt recorded in the first five months of 2015.

AEP's balance sheet remains strong with the Company continuing to achieve positive cash flow generation.

Development

The Group's new planting for the first five months ended 31 May 2016 was 427 hectares (five months to May 2015:760 hectares). As indicated in the preliminary announcement on 26 April 2016 and Interim Management Statement on 19 May 2016, new plantings remain behind schedule due to delays in finalising settlement of land compensation with villagers in Bengkulu, Bangka and Kalimantan. The villagers are seeking compensation beyond what the Group considers fair and reasonable resulting in protracted negotiations.

The mechanical works at the Biogas plant in Kalimantan mill is completed while progress of the civil works for the anaerobic lagoon is severely affected by heavy rain. The Group however expects to fill the lagoon with effluents in late June 2016 and top it with membrane to trap the methane gas by the third quarter of 2016. Civil works on another Biogas plant in Bengkulu is 80% completed and the plant equipments are delivered to site. The Biogas projects are in line with the Group's commitment to reduce its carbon footprints.

Outlook

The CPO price closed at $720/mt on 6 June 2016, representing a 29% increase from the start of the year. The Group expects the CPO price to moderate as the CPO production picks up in the third quarter of 2016.

We anticipate the CPO price will remain generally stable and the Board cautiously expects cash flow to improve.

For further enquiry, contact:

 
 
   Anglo-Eastern Plantations 
   Plc 
 Dato' John Lim Ewe 
  Chuan                          +44 (0)20 7216 4621 
 
 
   Panmure Gordon 
 Andrew Godber                   +44 (0)20 7886 2500

This information is provided by RNS

The company news service from the London Stock Exchange

END

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June 27, 2016 02:00 ET (06:00 GMT)

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