Anglo-Eastern Plantations PLC Interim Management Statement (1325G)
November 18 2015 - 05:38AM
UK Regulatory
TIDMAEP
RNS Number : 1325G
Anglo-Eastern Plantations PLC
18 November 2015
18 November 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 128,600 hectares producing mainly palm oil and
some rubber of which approximately 64,900 hectares are planted,
today announces its Interim Management Statement in respect of the
period since 30 June 2015.
Operational and financial performance
For the first nine months ended 30 September 2015, our own
production of fresh fruit bunches ("FFB") was 660,500mt, an
increase of 3% compared to the same period in 2014 (9M14:
644,200mt). FFB bought-in was 532,100mt, which represents an
increase of 11% in comparison with the same period in 2014 (9M14:
481,500mt). Total Crude Palm Oil ("CPO") produced was 239,700mt, 6%
higher than the corresponding period in 2014 (9M14: 225,100mt) due
to both higher FFB production and external FFB purchase.
CPO CIF Rotterdam price averaged $630/mt for the first nine
months to 30 September 2015. This represents a decrease of 26% from
the average price of $851/mt recorded in the comparative period of
2014 and is below the $700/mt being the price at the start of
2015.
The Group's balance sheet remains strong with the Company
continuing to generate positive cash flow. The Company's Long Term
Development Loans totalled $34.75m as at 30 September 2015 (3Q14:
$35m).
Development
The Group's new planting for nine months ended 30 September 2015
totalled 1,686 hectares, of which 212 hectares comprise of
replanting, is behind our expected schedule. As reported previously
this was due primarily to our objective of seeking a satisfactory
settlement with villagers for land compensation payments. These
negotiations are continuing and the Management is confident that
some of these negotiations will be concluded successfully.
Replanting in North Sumatra was necessary due to decreasing yield
as the trees are over 25 years of age. Furthermore, 153 hectares
were converted from rubber to oil palm.
The construction of a 45 mt/hour palm oil mill in Central
Kalimantan was completed in Q2 2015 and the mill has started to
process our internal crops. Teething problems in the new mill will
be progressively resolved before the mill starts to purchase
outside crops in the fourth quarter.
Outlook
CPO price closed at $550/mt on 12 November 2015, representing a
21% decrease from $700/mt from the start of the year. The CPO price
has been on a downward trend for most of 2015 due to the slowdown
in global economy resulting in lower demand as well as higher
global oilseeds supplies particularly from bumper harvest of
soybean. CPO price did not improve significantly despite El Nino
weather phenomenon which is expected to reduce FFB production in
the coming months.
The low crude oil prices have hampered the competitiveness and
development in biodiesel resulting in lower demand for CPO.
The CPO price outlook for the remaining of the year remains
weak.
Notwithstanding the recent changes to the Listing Rules, AEP
intends to continue to issue a quarterly statement to update
shareholders of progress across the Group.
For further enquiry, contact:
Anglo-Eastern Plantations
Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon
Russell Cook
Karri Vuori +44 (0)20 7886 2980
This information is provided by RNS
The company news service from the London Stock Exchange
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