TIDMNBPO
RNS Number : 8643M
New Britain Palm Oil Limited
05 February 2009
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New Britain Palm Oil Limited
Trading update
New Britain Palm Oil Limited ("NBPOL" or the "Company") provides a trading
update ahead of reporting its final results for the year ended 31 December 2008
on 27 February 2008.
The Company expects to report revenues for the year of approximately $331
million, marginally ahead of market expectations, and adjusted profit before tax
(before foreign exchange losses, the Ramu acquisition and IAS 41 Agriculture) in
the range of market expectations, delivering very strong growth in profits on an
equivalent basis. This trading result has been achieved despite the significant
weakening of CPO prices during the second half of the year and higher input
costs, most notably for fuel and fertiliser.
Large movements in foreign exchange rates over the year ended 31 December 2008
will however impact the reported results for the Company with a foreign exchange
loss in excess of $15 million having been incurred over the period. A large
portion of this relates to a GBP18 million cash deposit the Company made in
August 2008 for the funding of the UK refinery project. The subsequent weakening
of GBP Sterling has resulted in a significant, albeit unrealised, foreign
exchange loss. The Company also converted the balance of its US Dollar cash
resources into PNG Kina during the year, partly to cover the Ramu acquisition,
and the PNG Kina strength against the US Dollar resulted in a foreign exchange
loss. This is a non-recurring, non-operational effect.
The Company has made a good start to the current financial year with
approximately 130,000 tonnes of CPO sold or hedged, as at today's date, at an
average price of approximately $725/tonne compared to spot prices of
approximately $540/tonne (CIF Rotterdam). Demand for palm oil from NBPOL's
customers, who serve or operate exclusively in the food manufacturing industry,
remains strong. NBPOL continues to invest in its plantations and operations,
with both the integration of Ramu and the development of the UK refinery on
target, which the board of NBPOL believes provides a solid underpinning for
continued growth into the future.
The Company will provide a fuller update on current trading with the
announcement of its final results.
Enquiries:
+------------------------------------+------------------------------------+
| Gavin Anderson (Financial PR | Tel: +44(0)20 7554 1400 |
| Adviser) | |
+------------------------------------+------------------------------------+
| Ken Cronin | Email: nbpol@gavinanderson.co.uk |
+------------------------------------+------------------------------------+
| Janine Brewis | |
+------------------------------------+------------------------------------+
| Anthony Hughes | |
+------------------------------------+------------------------------------+
| | |
+------------------------------------+------------------------------------+
| New Britain Palm Oil Limited | Tel: +44(0)20 7554 1400 |
+------------------------------------+------------------------------------+
| Nick Thompson | |
+------------------------------------+------------------------------------+
| Alan Chaytor | |
+------------------------------------+------------------------------------+
| David Dann | |
+------------------------------------+------------------------------------+
| | |
+------------------------------------+------------------------------------+
| Singer Capital Markets Limited | Tel: +44(0)20 3205 7500 |
+------------------------------------+------------------------------------+
| Nicholas How | |
+------------------------------------+------------------------------------+
| Richard Savage | |
+------------------------------------+------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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