22 October 2024
Anglo-Eastern Plantations
Plc
("AEP" or the "Company")
Trading Statement
Anglo-Eastern Plantations Plc, which
owns, operates and develops plantations in Indonesia and Malaysia,
today announces a trading update covering the nine months to 30
September 2024.
Operational and financial
performance
For the first nine months ended 30
September 2024, production of our fresh fruit bunches ("FFB") was
764,800mt, a decrease of 9% compared to 841,960mt for the same
period in 2023. This was primarily due to lower FFB yield from aged
trees in Bengkulu where 2,264 hectares of
old palm were felled in Bengkulu over the last two years. This is
in line with the Group's replanting program to replenish old and
Dura palms with Tenera seedlings of better quality to ensure higher
FFB yields and better crude palm oil ("CPO") extraction in the
longer term.
FFB bought-in was 733,150mt, a
decrease of 9% in comparison to
805,030mt for the same period in 2023. The decline
in external crop purchases was primarily driven by lower crop
yields of surrounding plantations and smallholders in Bengkulu and
Kalimantan.
Total CPO produced was 297,730mt, a
decrease of 12% compared to 338,840mt for the corresponding period
in 2023 due to lower FFB supplied from both our estates and
bought-in crops.
The average price of CPO ex-Rotterdam
was $1,040 per metric ton for the first nine months of 2024,
reflecting a 6% increase compared to the $983 per metric ton
average during the same period in 2023. Prices remain volatile,
with CPO ex-Rotterdam closing at $1,160 per metric ton on 14
October 2024, up from $935 per metric ton at the beginning of the
year.
The Group's average ex-mill CPO price
for the first nine months also rose by 5% to $768 per metric ton
from a $729 per metric ton average for the same period in 2023.
Additionally, the average palm kernel price increased by 34%,
reaching $459 per metric ton for the first nine months compared to
$342 per metric ton for the same period in 2023.
Development
The Group's new planting and
replanting for the first nine months of 2024 totalled 1,488 ha
compared to 1,452 ha for the same period last year. In addition,
Plasma planting for the period was 109 ha compared to 126 ha for
the same period last year.
The Group's total landholding is
90,510 ha, of which the planted area stands at 68,501 ha with an
estimated remaining plantable area of 9,200 ha.
The Group has submitted the
environmental impact assessment ("EIA") for the eighth mill in
Kalimantan and is now pending approval from the Ministry of
Environment and Forestry.
The Group has also completed the
acquisition of the remaining minority interests in the PT Bangka
Malindo Lestari and PT Kahayan Agro Plantation for a consideration
of US$400,000 on 4 October 2024. Following these transactions, the
Company now holds 100% ownership of the issued share capital of all
its Indonesian subsidiaries.
Outlook
CPO prices are expected to maintain
but there is pressure in view of an expected higher Indonesian palm
oil production for the remaining part of the year.
However, the planned implementation of the
Biodiesel B40 mandate in Indonesia is expected to boost domestic
consumption, thereby tightening supply and supporting CPO
prices.
For further enquiry,
contact:
Anglo-Eastern Plantations
Plc
+44 (0) 20 7216 4621
Dato' John Lim Ewe
Chuan, Executive
Director
Marcus Chan Jau
Chwen, Executive
Director (Corporate Affairs)
Kevin Wong Tack
Wee, Group Chief
Executive Officer
Panmure Liberum
Amrit Mahbubani /
Freddie Wooding
+44 (0) 20 3100 2000
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.