Anglo-Eastern Plantations PLC AGM Statement (5751I)
June 02 2014 - 4:30AM
UK Regulatory
TIDMAEP
RNS Number : 5751I
Anglo-Eastern Plantations PLC
02 June 2014
2 June 2014
Anglo-Eastern Plantations Plc
("AEP" or the "Group")
AGM Statement
The twenty-ninth Annual General Meeting of Anglo-Eastern
Plantations Plc, owns, operates and develops plantations in
Indonesia and Malaysia, amounting to some 127,800 hectares
producing mainly palm oil and some rubber of which approximately
61,680 hectares are planted, will be held at the offices of UHY
Hacker Young LLP, Quadrant House, 4 Thomas More Square, London E1W
1YW at 11.00am today. At the meeting, the Chairman will comment on
current operational performance and development as well as the
outlook for the remainder of 2014 as follows:-
Operational and financial performance
For the first four months ended 30 April 2014, our own
production of fresh fruit bunches ("FFB") was 247,400mt, an
increase of 18% compared to the same period in 2013 (first four
months 2013: 210,000mt). FFB bought in was 194,600mt, 97% higher in
comparison with the same period in 2013 (first four months 2013:
98,800mt). Total Crude Palm Oil ("CPO") produced was 89,200mt, 38%
higher than the corresponding period in 2013 (first four months
2013: 64,600mt) due tohigher volume of FFB processed by the five
mills.
CPO CIF Rotterdam price averaged U$905/mt for the first four
months to 30 April 2014, an increase of 7% from the average of
U$844/mt recorded in the first four months of 2013.
AEP's balance sheet remains strong with the Company continuing
to achieve positive cash flow generation. The Company's Long Term
Development Loans totaled U$35m at 30 April 2014 (first four months
2013:U$35m).
Development
The Group new planting for the first four months ended 30 April
2014 was 582 hectares (first four months 2013:569 hectares). As
indicated in the preliminary announcement on 8 April 2014, the
Group planted less than planned, due primarily to delays in
finalising agreement with villagers for land compensation payments
in Bengkulu and Bangka. The villagers are asking for compensation
beyond what the Group considered fair and reasonable resulting in
protracted negotiations.
As mentioned in the Interim Management Statement on 16 May 2014,
despite the heavy rainfall also disrupting the earthworks for
construction of the mill in Central Kalimantan in second quarter of
2013, the earthworks are now almost completed and the construction
of mill buildings is progressing. This $18 million mill with an
initial capacity of 45mt/hr is expected to be operational in second
quarter of 2015. As previously reported the construction of another
mill in North Sumatera is deferred while the Board considers
further the relative cost advantages of two selected sites.
The $5 million biogas and biomass project for one of the mills
in North Sumatera is nearing completion. The gas purification plant
was recently installed with hot air ducting, biogas piping and
biogas engine ancillaries' installation to follow. Final testing
and commissioning is expected by the end of second quarter of 2014.
When fully operational, it will result in a significant reduction
in the greenhouse gas emissions which are presently discharged from
the effluent treatment in the anaerobic lagoons.
Outlook
The CPO price closed at $875/mt as at 29 May 2014, representing
a 2% decrease from the start of the year. The CPO price peaked at
$993/mt in early March 2014 on concerns that El Nino weather
pattern could reduce output and forced buyers to reduce purchases.
CPO prices then retreated from the recent 18-month peak due to soft
demand for tropical oil as key consumers in India and China cut
back on purchases. Palm oil imports by India in February 2014
plunged to the lowest in nearly three years. It was also reported
that the Indian consumers are likely to import more sunflower and
soy oil as price differential with CPO narrowed.
The Indonesian Rupiah appreciated by about 5% against US dollar
in the current period. To mitigate exposure to currency exchange
volatility, the Group is continuing to manage its cash in dollar
and local currency prudently, taking into consideration its
dollar-denominated borrowings and operational cost currency
requirements.
We anticipate that CPO price will remain generally stable due to
the increase in demand from biodiesel and modest levels of industry
output. The Board remains cautious but expects profitability and
cash flow to remain in line with management forecasts for the
remainder of 2014.
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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