Anglo-Eastern Plantations PLC Interim Management Statement (4853T)
November 20 2013 - 4:00AM
UK Regulatory
TIDMAEP
RNS Number : 4853T
Anglo-Eastern Plantations PLC
20 November 2013
20 November 2013
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Interim Management Statement
Anglo-Eastern Plantations Plc and its subsidiaries, which owns,
operates and develops plantations in Indonesia and Malaysia,
amounting to some 126,000 hectares producing mainly palm oil and
some rubber of which approximately 60,210 hectares are planted,
today announces its Interim Management Statement in respect of the
period since 30 June 2013.
Operational and financial performance
For the first nine months ended 30 September 2013, our own
production of fresh fruit bunches ("FFB") was 569,210mt, a
reduction of 1% compared to the same period in 2012 (9M12:
573,000mt). FFB bought-in was 345,000mt, which represents a decline
of 16% in comparison with the same period in 2012 (9M12:
411,700mt). Total Crude Palm Oil ("CPO") produced was 188,300mt, 3%
lower than the corresponding period in 2012 (9M12: 194,400mt) due
to lower purchase of external FFB.
CPO CIF Rotterdam price averaged $845/mt for the first nine
months to 30 September 2013. This represents a decrease of 20% from
the average of $1,059/mt recorded in the third quarter of 2012 but
is above the $835/mt being the price at the start of 2013.
The Group's balance sheet remains strong with the Company
continuing to generate positive cash flow. The Company's Long Term
Development Loans totalled $35m as at 30 September 2013 (3Q12:
$20m). The increase was due to drawdown of loans to finance
plantation development activities.
Development
The Group's new planting for nine months ended 30 September 2013
totalled 1,237 hectares which is behind our expected schedule. As
reported previously this was due primarily to protracted
negotiations over settlement of land compensation with villagers
and delay in issuance of land release permit and high conservation
value permit for Kalimantan project. These negotiations are
continuing and the Board is confident that these negotiations will
be concluded eventually.
A re-planting program covering 400 hectares in North Sumatra is
expected to be completed by December 2013. The Group will continue
to expand planted area despite the challenging environment.
The biogas and biomass project for a mill in North Sumatra is in
its final stages of completion and commissioning is expected in 1Q
2014. This will enhance the effluent treatment and mitigate the
biogas emission. Empty fruit bunches will also be processed into
saleable end products.
The construction of the 45mt/hr palm oil mill in Central
Kalimantan previously announced has commenced in 4Q 2013 and is
expected to be commissioned in 2Q 2015. The construction of the
60mt/hr palm oil mill in North Sumatra has been deferred while the
Board considers further the relative cost advantages of two
selected sites.
Outlook
CPO price closed at $920/mt on 14 November 2013, representing a
10% increase from $835/mt from the start of the year. The
Indonesian government recently announced a mandatory blending of
biodiesel fuel to at least 10% by January next year which is aimed
at helping to reduce the country's current account deficit. The
Board anticipates that this will lead to increase in demand for CPO
and depending on the level of CPO inventory, may help boost CPO
price.
The price of CPO has remained within the U$800/mt to U$900/mt
range during this period and demand for the Group's products
remains strong. As a result the Board anticipates that performance
for the remainder of 2013 will be satisfactory and in line with
management expectations.
For further enquiry, contact:
Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Charles Stanley Securities
Russell Cook
Karri Vuori +44 (0)20 7149 6000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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