Anglo-Eastern Plantations PLC Trading Statement (8850V)
November 08 2017 - 03:00AM
UK Regulatory
TIDMAEP
RNS Number : 8850V
Anglo-Eastern Plantations PLC
08 November 2017
8 November 2017
Anglo-Eastern Plantations Plc
("AEP" or "Group")
Trading Statement
Anglo-Eastern Plantations Plc and its subsidiaries, which owns,
operates and develops plantations in Indonesia and Malaysia,
amounting to some 128,400 hectares producing mainly palm oil and
some rubber of which approximately 67,530 hectares are planted,
today announces a trading update in respect of the period since 30
June 2017.
Operational and financial performance
For the first nine months ended 30 September 2017, our own
production of fresh fruit bunches ("FFB") was 690,520mt, an
increase of 10% compared to the same period in 2016 (9M16:
628,740mt). FFB bought-in was 749,050mt, which represents an
increase of 47% in comparison with the same period in 2016 (9M16:
509,250mt). Total Crude Palm Oil ("CPO") produced was 290,840mt,
24% higher than the corresponding period in 2016 (9M16: 235,350mt)
due to both higher FFB production and external FFB purchase.
CPO CIF Rotterdam price averaged $723/mt for the first nine
months to 30 September 2017. This represents an increase of 5% from
the average price of $688/mt recorded in the comparative period of
2016 however it is below the price of $795/mt 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 $31.0m as at 30 September 2017 (3Q16:
$35.5m). The Group had net cash of $110.9m as at 30 September 2017
(3Q16: $72.7m).
Development
The Group's new planting for nine months ended 30 September 2017
totalled 1,636 hectares, of which replanting made up 563 hectares.
As reported previously the Group is facing difficulty in concluding
land compensation settlement with villagers in Bengkulu and Bangka
due to unreasonably high land prices with negotiations
continuing.
The 2 Megawatt biogas plant for the mill in Bengkulu has been
completed and presently supplying electricity to the State
Electricity Company. The plant has supplied over 2,590 MWh since it
began operations in May 2017. The biogas plant in Kalimantan has
also been completed and is ready for commissioning. The mills will
further reduce their reliance on fossil fuels and at the same time
reduce the Group's carbon footprint.
Outlook
CPO closed at the price of $725/mt on 6 November 2017,
representing a 9% decrease from $795/mt from the start of the year.
This is due to the recovery of FFB production post El-Nino weather
phenomenon.
The CPO price for the remainder of the year should remain
relatively stable especially with the coming monsoon which is
expected to disrupt FFB production.
For further enquiry, contact:
Anglo-Eastern Plantations
Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon (UK)
Limited
Andrew Godber +44 (0)20 7886 2500
The information communicated in this announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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