Anglo-Eastern Plantations PLC Trading Statement (2649M)
May 20 2022 - 6:00AM
UK Regulatory
TIDMAEP
RNS Number : 2649M
Anglo-Eastern Plantations PLC
20 May 2022
20 May 2022
Anglo-Eastern Plantations Plc
("AEP", "Group" or "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 first quarter ended 31 March
2022.
Operational and financial performance
For the first three months ended 31 March 2022, our own
production of fresh fruit bunches ("FFB") was 268,700mt, a decrease
of 5% compared to the same period in 2021 (3M21: 281,900mt).
Plantations in North Sumatera with younger palms performed
reasonably well while plantations with older palms in Bengkulu and
Kalimantan experienced a drop in production. This was probably due
to seasonal variation as rainfalls in these areas were close to
normal. Lower production in Bengkulu was also due to the reduction
of matured areas as 1,194 hectares were replanted from 2021 to
first quarter of 2022. FFB bought-in was also lower at 261,200mt
(3M21: 278,500mt), a decrease of 6% in line with lower crop
production in the Bengkulu region. As a result, crude palm oil
("CPO") production was lower by 7% at 107,300mt compared to
114,900mt last year.
The CPO price ex-Rotterdam averaged $1,592/mt for the first
three months to 31 March 2022. This represented an increase of 48%
from the average price of $1,078/mt recorded in the first quarter
of 2021 and was above $1,320/mt at the start of the year. As a
result, the mill enjoyed a 55% higher ex-mill price of $1,041/mt
compared to $673/mt for the same period last year. Short supply of
global vegetable oil caused by the dry weather in soy-bean
producing countries and the disruption in sunflower harvest in
Ukraine were some of the likely causes for the sharp rise in CPO
prices.
The Group's balance sheet remains strong with no outstanding
bank loans. The Group has net cash of $252.5 million as at 31 March
2022.
Development
AEP has plantations across Indonesia and Malaysia, amounting to
some 128,000 hectares, of which approximately 75,100 hectares
(including Plasma) are planted. New planting for the first three
months ended 31 March 2022 was lower at 192 hectares (3M21: 442
hectares) including Plasma. Higher rainfall in Central Kalimantan
disrupted our land clearance.
After much delay due to the pandemic and new regulations imposed
on the importation of certain machines, the construction work for
the seventh mill in North Sumatera is expected to be completed by
the fourth quarter of 2022.
The site for the development of the second mill in Kalimantan
has been selected and drawings will be finalized for submission to
local authorities for building permits and environmental impact
assessment.
Outlook
The CPO price ex-Rotterdam started the year at $1,320/mt. Since
then, it has trended upwards to close at $1,780/mt on 6 May 2022.
The move by the Indonesian government to ban the export of CPO and
refined palm oil from 28 April 2022 has literally cut off the
largest supply of global vegetable oil. The ban has since driven up
global edible oil prices as supplies were already choked by factors
like drought in South America and the war in Ukraine. However, as
expected by Industry experts, the Indonesian government announced
yesterday that the ban will be lifted with effect from 23 May 2022
as domestic supply had improved and the price of cooking oil had
reduced since the ban came into effect on 28 April 2022 . A
pullback in the local CPO price is also likely as crop production
improves further from the second half of the year.
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
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act
2018.
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