Anglo-Eastern Plantations PLC Trading Statement (3124Q)
October 26 2021 - 7:47AM
UK Regulatory
TIDMAEP
RNS Number : 3124Q
Anglo-Eastern Plantations PLC
26 October 2021
26 October 2021
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 covering the period to 30 September 2021.
Operational and financial performance
For the first nine months ended 30 September 2021, our own
production of fresh fruit bunches ("FFB") was 915,690mt, an
increase of 13% compared to the same period in 2020 (9M20:
812,460mt). North Sumatera and Kalimantan plantations contributed
substantially to the increase of internal crop production due to
better weather conditions and an increase in matured area. FFB
bought-in was 878,590mt, an increase of 35% in comparison with the
same period in 2020 (9M20: 651,030mt). Third parties' harvest
similarly peaked, resulting in higher bought-in crops in the
Bengkulu, Riau and Kalimantan regions. Total Crude Palm Oil ("CPO")
produced was 364,040mt, an increase of 23% compared to the
corresponding period in 2020 (9M20: 295,330mt) due to higher FFB
supplied from both our own estates and bought-in crops.
CPO price ex-Rotterdam averaged $1,156/mt for the first nine
months of 2021. This represents a significant increase of 74% from
the average price of $665/mt recorded in the corresponding period
of 2020. CPO ex-Rotterdam closed at $1,360/mt on 8 October 2021
compared to $1,050/mt at the start of the year. Our Group's average
ex-mill price for CPO for the first nine months of the year was
also higher by 36% at $731/mt (9M20: $538/mt).
The Group's balance sheet remains strong. The Company's Long
Term Development Loans of $2.7 million have been fully repaid as at
30 September 2020 and so the Group has no bank borrowing. The Group
had net cash of $192.2m as at 30 September 2021 (3Q20: $90.2m).
Development
AEP has plantations across Indonesia and Malaysia, amounting to
some 128,000 hectares, of which approximately 74,811 hectares
(including Plasma) are planted. The Group's new planting and
replanting for the nine months ended 30 September 2021 totalled
2,129 hectares (including Plasma) . Plasma planting for the period
was 352 hectares (9M2020: 271 hectares)
The concrete pilling work for the construction of the seventh
mill in North Sumatera has been completed. The fabrication of the
loading ramp, clarification tanks and conveyors have also been
completed. The tender for building the effluent treatment plant has
recently been approved and awarded at a cost of $2.1 million. As
the mill is located on peat, the plant has to be built according to
strict specifications laid out by environmental laws in Indonesia.
The final cost of the effluent treatment plant, including an oil
recovery station, is therefore estimated to cost $4.2 million, more
than originally expected. The mill is likely to be completed in Q3
2022.
As economic activities in Indonesia continue to pick up, the
state authorities which had suspended the uptake of electricity
from our biogas plant in Blankahan in North Sumatera from Q2 2020
has now resumed the purchase of electricity.
Outlook
CPO prices are expected to be strong for the remaining part of
the year due to strong demand as the Covid pandemic eases
worldwide. Projected wetter-than-normal weather in most parts of
Indonesia with elevated flood risks for the last quarter of 2021
could hamper the robust crop production, which in turn could
sustain the current trend of CPO prices.
For further enquiry, contact:
Anglo-Eastern Plantations
P lc
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 as it forms part of UK domestic law by virtue
of the European Union (Withdrawal) Act 2018.
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