Anglo-Eastern Plantations PLC Interim Management Statement (2071O)
May 26 2015 - 4:48AM
UK Regulatory
TIDMAEP
RNS Number : 2071O
Anglo-Eastern Plantations PLC
26 May 2015
26 May 2015
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Interim Management Statement
Anglo-Eastern Plantations Plc and its subsidiaries, which owns,
operates and develops plantations in Indonesia and Malaysia,
amounting to some 127,800 hectares producing mainly palm oil and
some rubber of which approximately 63,830 hectares are planted,
today announces its Interim Management Statement in respect of the
period since 31 December 2014.
Operational and financial performance
For the first three months ended 31 March 2015, our own
production of fresh fruit bunches ("FFB") was 172,200mt, a decrease
of 5% compared to the same period in 2014 (3M14: 180,630mt). FFB
bought-in was 127,900mt, which represents a decrease of 5% in
comparison with the same period in 2014 (3M14: 135,300mt). Total
Crude Palm Oil ("CPO") produced was 58,200mt, 9% lower than the
corresponding period in 2014 (3M14: 64,000mt).
CPO CIF Rotterdam price averaged $669/mt for the first three
months to 31 March 2015. This represents a decrease of 26% from the
average of $904/mt recorded in the first quarter of 2014 and is
within our expected price range of $600/mt to $800/mt for the first
half of 2015.
The Group's balance sheet remains strong with the Company
continuing to achieve positive cash flow generation. The Company's
Long Term Development Loans totalled $34.9m as at 31 March 2015
(3M14: $35.0m). The decrease was due to repayment of loans.
Development
New planting by the Group for the first three months ended 31
March 2015 was 356 hectares (3M14: 427 hectares). As indicated in
the preliminary announcement on 30 April 2015, new plantings remain
behind schedule due to delays in finalising settlement of land
compensation with villagers in Bengkulu, Bangka and Kalimantan. The
villagers seek compensation beyond what the Group considered fair
and reasonable resulting in protracted negotiations.
The mill construction in Central Kalimantan is progressing on
schedule. This mill with an initial capacity of 45mt/hr is expected
to be operational by the end of second quarter of 2015.
Outlook
The CPO price closed at $655/mt in mid-May 2015, representing a
7% decrease from the start of the year. The Australian Bureau of
Meteorology has recently predicted a moderate-to-strong El Nino
with increased intensify from September 2015. It reported that it
is likely to create drier conditions in Indonesia and parts of
South East Asia. Historically El Nino will result in lower rainfall
in palm oil producing regions which would result in lower CPO
inventory and lead to higher CPO prices. Nevertheless its effect,
if any, is likely to be felt post 2015.
In the near term, the upside on CPO price may be limited in view
of seasonally higher production and high stockpiles. The Board
remains cautious but expects profitability and cash flow to remain
in line with management forecasts for 2015.
For further enquiry, contact:
Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Charles Stanley Securities
Russell Cook
Karri Vuori +44 (0)20 7149 6000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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