Anglo-Eastern Plantations PLC Trading Statement (6767S)
November 07 2019 - 7:21AM
UK Regulatory
TIDMAEP
RNS Number : 6767S
Anglo-Eastern Plantations PLC
07 November 2019
7 November 2019
Anglo-Eastern Plantations PLC
("AEP" or the "Company")
Trading Statement
Anglo-Eastern Plantations Plc, a major producer of palm oil and
some rubber across Indonesia and Malaysia, today announces a
trading update in respect of the third quarter since 30 June
2019.
Operational and financial performance
For the first nine months ended 30 September 2019, our own
production of fresh fruit bunches ("FFB") was 765,240mt, a decrease
of 3% compared to the same period in 2018 (9M18: 787,160mt). FFB
bought-in was 690,470mt, which represents a decrease of 9% in
comparison with the same period in 2018 (9M18: 760,460mt). Total
Crude Palm Oil ("CPO") produced was 296,600mt, 6% lower than the
corresponding period in 2018 (9M18: 316,920mt) due to both lower
FFB production and external FFB purchase.
CPO price ex-Rotterdam averaged $528/mt for the first nine
months of 2019. This represents a significant decrease of 16% from
the average price of $629/mt recorded in the comparative period of
2018. CPO prices however have been climbing steadily since the last
quarter. CPO ex-Rotterdam closed at $601/mt on 25 October 2019,
representing a 16% increase from $517/mt at the start of the year.
CPO prices are expected to rise on the back of a reduction in
supply due to reduction of fertiliser application by planters, dry
weather and biological tree stress after a bumper harvest last
year.
The Group's balance sheet remains strong. The Company's Long
Term Development Loans totalled $10.9m as at 30 September 2019
(3Q18: $23.6m). The Group had net cash of $81.2m as at 30 September
2019 (3Q18: $98.3m). The cash generated from operations was unable
to meet the spending on investing activities resulting in a lower
net cash position.
Development
AEP has plantations across Indonesia and Malaysia, amounting to
some 128,200 hectares, of which approximately 70,600 hectares
(including Plasma) are planted. The Group's new planting for the
nine months ended 30 September 2019 totalled 871 hectares
(including Plasma). Planting has generally been slow due to the dry
weather across Indonesia. In Kalimantan planting can only begin
after completion of the peer review on the high carbon stock
sustainability study ("HCS") expected at the beginning of the
fourth quarter of 2019.
The earthwork for the seventh mill in North Sumatera has been
completed and the next phase of inviting tenders for civil and
structural works shall begin shortly.
The construction of the fourth biogas plant in North Sumatera is
progressing well. Most of the equipment including biogas engine and
ancillaries have been installed with electrical and external piping
works expected to be completed in last quarter of the year.
Outlook
Stronger CPO prices are expected in the fourth quarter of 2019
and next year based on the anticipated tightening of palm oil
supply and implementation of the B30 biodiesel programme in
Indonesia come January 2020.
For further enquiry, contact:
Anglo-Eastern Plantations
PLC
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon (UK) Limited
Dominic Morley +44 (0)20 7886 2954
Note: The information communicated in this announcement is
inside information for the purposes of Article 7 of Market Abuse
Regulation 596/2014.
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END
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