Anglo-Eastern Plantations PLC Trading Statement (9575F)
May 23 2017 - 5:00AM
UK Regulatory
TIDMAEP
RNS Number : 9575F
Anglo-Eastern Plantations PLC
23 May 2017
23 May 2017
Anglo-Eastern Plantations Plc
("AEP" or the "Group")
Trading Statement
Anglo-Eastern Plantations Plc and its subsidiaries, is a major
producer of palm oil and some rubber across Indonesia and Malaysia,
amounting to some 128,600 hectares of which approximately 67,000
hectares (including Plasma) are planted, today announces a trading
update in respect of the period since 31 December 2016.
Operational and financial performance
For the first three months ended 31 March 2017, our own
production of fresh fruit bunches ("FFB") was 223,900mt, an
increase of 20% compared to the same period in 2016 (3M16:
187,000mt). Higher production was due to the recovery of FFB
production in Riau and Kalimantan where the effects of drought and
dry weather were evident last year. FFB bought-in was 239,800mt,
which represents an increase of 117% in comparison with the same
period in 2016 (3M16: 110,800mt) due mainly to the upsurge of FFB
production in surrounding plantations. As a result the Crude Palm
Oil ("CPO") produced was 94,200mt, 49% higher than the
corresponding period in 2016 (3M16: 63,200mt).
CPO CIF Rotterdam price averaged $774/mt for the first three
months to 31 March 2017. This represents an increase of 23% from
the average price of $630/mt recorded in the first quarter of 2016
but is below $790/mt being the price at the start of 2017.
The Group's balance sheet remains strong with the Company
continuing to generate positive cash flow. The Company's Long Term
Development Loans totalled $32.7m as at 31 March 2017 (31 March
2016: $35.8m). The Group has net cash of $97.7m as at 31 March
2017.
Development
The Group's new planting for the three months ended 31 March
2017 totalled 363 hectares (including Plasma). A replanting of
about 1,700 hectares in North Sumatera will begin in the second
quarter of 2017 and should be completed by the year end.
The piping and electrical works for the biogas plants in
Bengkulu and Kalimantan are nearing completion. The Bengkulu biogas
plant is expected to generate a surplus of 1.8 megawatt of
electrical power from the second quarter of 2017. The Group is
committed to gradually reduce its greenhouse gas emissions from the
palm oil mills.
Outlook
The CPO CIF Rotterdam price started the year at $790/mt and
reached a peak price of $852/mt in middle of January 2017. Since
then it appears to trend downwards and closed at $685/mt on 31
March 2017. The CPO price is forecasted to remain weak for the rest
of the year due to concerns of oversupply from the recovery of FFB
production in Indonesia and Malaysia and pressure from larger
production of competing oil.
For further enquiry, contact:
Anglo-Eastern Plantations
Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon & Co
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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