Anglo-Eastern Plantations PLC Trading Statement (8381O)
May 22 2018 - 6:43AM
UK Regulatory
TIDMAEP
RNS Number : 8381O
Anglo-Eastern Plantations PLC
22 May 2018
22 May 2018
Anglo-Eastern Plantations Plc
("AEP" or the "Group")
Trading Statement
The group comprising Anglo-Eastern Plantations Plc ("AEP") and
its subsidiaries ("The Group"), is a major producer of palm oil and
some rubber across Indonesia and Malaysia, amounting to some
128,200 hectares of which approximately 68,300 hectares (including
Plasma) are planted, today announces a trading update in respect of
the period since 31 December 2017.
Operational and financial performance
For the first three months ended 31 March 2018, our own
production of fresh fruit bunches ("FFB") was 232,400mt, an
increase of 4% compared to the same period in 2017 (3M17:
223,900mt).Higher harvest in Riau and Kalimantan compensated for
the lower production in North Sumatera plantations due to
replanting exercises. FFB bought-in was 211,900mt, which represents
a decrease of 12% as competition among new mills intensified in
comparison with the same period in 2017 (3M17: 239,800mt). As a
result the Crude Palm Oil ("CPO") produced was 91,400mt, 3% lower
than the corresponding period in 2017 (3M17: 94,200mt).
CPO price ex-Rotterdam averaged $672/mt for the first three
months to 31 March 2018. This represents a decline of 13% from the
average price of $774/mt recorded in the first quarter of 2017 and
is below $678/mt at the start of 2018.
The Group's balance sheet remains strong with the Company
continuing to generate positive cash flow. The Company's Long Term
Development Loans totalled $25.9m as at 31 March 2018 (31 March
2017: $32.7m). The Group has net cash of $117.7m as at 31 March
2018.
Development
The Group's new planting for the three months ended 31 March
2018 totalled 240 hectares (including Plasma). Replanting of about
418 hectares of oil palm in North Sumatera will continue in the
second quarter of 2018 and should be completed by the year end.
The biogas plant in Kalimantan is expected to commence
commercial operation by third quarter of 2018 after installation of
about 7 km of medium voltage transmission line.
Earthwork on the seventh mill in North Sumatera costing
approximately U$19 million has started and should be completed by
year end.
Outlook
The CPO price ex-Rotterdam started the year at $678/mt and
reached a peak of $700/mt in the fourth week of February 2018.
Since then it has trended downward and closed at $670/mt on 31
March 2018. The CPO price is forecasted to remain weak for the rest
of the year due to concerns of oversupply of FFB production in
Indonesia and Malaysia and pressure from larger production of
competing oil.
For further enquiry, contact:
Anglo-Eastern Plantations
Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon (UK)
Limited
Andrew Godber +44 (0)20 7886 2500
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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