TIDMNBPO
RNS Number : 1183S
New Britain Palm Oil Limited
13 May 2009
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13 May 2009
New Britain Palm Oil Limited
1st QUARTER REPORT AND TRADING UPDATE
New Britain Palm Oil Limited (LSE: NBPO) ("NBPOL" or the "Company"), a large
scale integrated industrial producer of palm oil in Australasia, announces its
1st quarter report and trading update for the period from
1 January 2009 to
31March 2009.
As a result of the Bursa Malaysia quarterly reporting requirements of its
major shareholder, Kulim Malaysia Berhad, NBPOL is required to provide the
following information in respect of the three months ended 31 March 2009:
+-----------------------------------+------------------+--------------------+
| | 3 months ended | 3 months ended |
| | 31 March 2009 | 31 March 2008 |
+-----------------------------------+------------------+--------------------+
| | | |
+-----------------------------------+------------------+--------------------+
| Sales (USD (m)) | 73.8 | 82.7 |
+-----------------------------------+------------------+--------------------+
| PBT (excluding IAS 41) (USD (m)) | 27.6 | 36.7 |
+-----------------------------------+------------------+--------------------+
| | | |
+-----------------------------------+------------------+--------------------+
| FFB Produced - own plantations | 266,610 | 218,080 |
| (Mt) | | |
+-----------------------------------+------------------+--------------------+
| FFB Processed (Mt) | 383,078 | 325,071 |
+-----------------------------------+------------------+--------------------+
| CPO Produced (Mt) | 87,690 | 73,648 |
+-----------------------------------+------------------+--------------------+
| PKO Produced (Mt) | 7,755 | 7,116 |
+-----------------------------------+------------------+--------------------+
| Average CPO price per Mt achieved | 747 | 954 |
| (USD) | | |
+-----------------------------------+------------------+--------------------+
(Note: USD exchange rates as at 31 March 2009 and 31 March 2008 respectively)
Nick Thompson, Chief Executive, stated:
"In the first quarter of 2009 the Company produced a record 95,445 tonnes of
crude palm and kernel oil, 22% ahead of the same period last year. The cropping
outlook for the next quarter appears to be equally as robust as production in
New Britain and the Solomon Islands will be at its peak over the next two
months. The peak crops at Ramu will be later in the year. The weather has been
seasonally wet but within normal parameters.
Oil extraction rates at the mills have not been helped by the seasonally high
rainfall and the longer than ideal harvesting intervals, but despite this, rates
have actually held up remarkably well and indeed are marginally ahead of this
period last year. The Company's crude palm oil extraction rate for the first
quarter of 2009 was 22.89% compared to 22.65% for the corresponding period in
2008. At the end of the quarter, our stocks of both crude and refined oils in
storage awaiting shipment were in excess of 29,789 tonnes.
Palm oil prices have increased some 50% during the quarter. We believe prices
are reflecting the fine balance of supply and demand for edible oils and fats as
witnessed by the recent rapid draw down of world palm oil stocks. Taking into
account our forward sales, NBPOL has averaged US$747 per tonne for crude palm
oil in the first quarter. As at the end of March, the Company has approximately
122,000 tonnes of oil sold or priced forward for 2009 at an average price of
approximately US$700 per tonne.
We are also pleased to note that the Company's significant input costs of
fertiliser, fuel and chemicals were lower in the first quarter of 2009 compared
to the corresponding period in the previous year and it is expected that this
saving on costs will continue as demand worldwide for these inputs remains lower
than normal.
The Company's balance sheet remains strong, substantially ungeared and with cash
reserves, less bank overdrafts, of US$54.6 million at the end of the quarter.
NBPOL generates significant free cash flow which is being used mainly to fund
expansion.
Works to increase the milling capacity of existing oil mills and to build new
mills are continuing, and expansion of storage capacity at our export terminal
at Kimbe, New Britain is nearing completion. The earthworks for our next new
mill in New Britain have commenced with civil works expected to commence in Q3
2009 for completion in the second half of 2010. This new mill will increase our
processing capacity by 60 tonnes of oil palm fruit bunches per hour and increase
the Company's processing capacity to 380 tonnes of oil palm fruit per hour.
Building works at our refinery in Liverpool are presently on schedule for
production to commence at the end of Q1 2010.
Oil palm seed sales revenue fell dramatically in the first quarter due to the
global impact of the credit crunch on our customers' planting programs. With the
recent rise in palm oil prices, we expect demand for seed to rekindle in the
second half of 2009 although we remain cautious on how rapid the recovery will
be due to on-going credit supply constraints. However, the potential positive
aspect of the slow down in oil palm planting will introduce future palm oil
supply constraints that we believe will support the palm oil price in future.
Turning to consider the acquisition of Ramu Agri-Industries Limited ("Ramu")
which was completed in October 2008, we are very pleased with the progress made
in integrating the business with that of NBPOL. In particular the NBPOL
management systems have now been put in place at Ramu alongside the appointment
of a new General Manager, bringing the Ramu operations into line with those
within NBPOL. We continue to work on areas of additional synergies within the
enlarged Company and overall consider that Ramu will represent an excellent
addition to the business of NBPOL.
The Company is also pleased to reaffirm the continuing status of NBPOL as a
certified supplier of sustainable palm oil from our entire production base in
West New Britain Province under the Roundtable on Sustainable Palm Oil (RSPO)
guidelines.
NBPOL continues to trade in line with the board's expectations and the board
remains confident of reporting further progress and growth in the year ahead."
Enquiries:
+---------------------------------------+-----------------------------------------+
| Kreab Gavin Anderson | Tel: +44(0)20 7554 1400 |
| James Benjamin | Email: |
| Anthony Hughes | nbpol@kreabgavinanderson.com |
| Ken Cronin | |
| | |
+---------------------------------------+-----------------------------------------+
| New Britain Palm Oil Limited | Tel: +44(0)20 7554 1400 |
| Nick Thompson | |
| Alan Chaytor | |
| David Dann | |
| | |
+---------------------------------------+-----------------------------------------+
| Akur Partners | Tel: +44 (0)20 7955 1513 |
| Andrew Dawber | |
| Tom Frost | |
| Anthony Richardson | |
| | |
+---------------------------------------+-----------------------------------------+
| Liberum Capital | Tel: +44(0)20 3100 2000 |
| Simon Stilwell | |
| Simon Atkinson | |
| | |
+---------------------------------------+-----------------------------------------+
Website: www.nbpol.com.pg
Notes to editors:
NBPOL is a large scale integrated industrial producer of sustainable palm oil in
Australasia and is headquartered in Papua New Guinea ('PNG'). It has over 44,500
hectares of planted palm oil plantations and long term leases over 30,000
hectares of additional land, some of which will be converted to palm oil, six
oil mills, a refinery and a seed production and plant breeding facility. The
Company is quoted on both the Main Market of the London Stock Exchange and on
the Port Moresby Stock Exchange in PNG.
NBPOL is fully vertically integrated, producing its own seed (which it also
sells globally) and planting, cultivating and harvesting its own land and
processing and refining palm oil. It also contracts directly with its end
customers in the EU and arranges shipping of its products.
NBPOL has high regard for the importance of its sustainability credentials
and is active in proving its performance through its certification to ISO 14001
and its close involvement and support of the Roundtable on Sustainable Palm Oil
('RSPO'). In September 2008, NBPOL announced that its operations in Papua New
Guinea were officially certified by the RSPO as conforming to RSPO Principles
and Criteria on sustainability.
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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