Anglo-Eastern Plantations PLC Trading Statement (4140S)
06 Novembre 2023 - 8:00AM
UK Regulatory
TIDMAEP
RNS Number : 4140S
Anglo-Eastern Plantations PLC
06 November 2023
6 November 2023
Anglo-Eastern Plantations Plc
("AEP" or the "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 covering the nine months to 30 September 2023.
Operational and financial performance
For the first nine months ended 30 September 2023, our own
production of fresh fruit bunches ("FFB") from continuing
operations was 841,960mt, a decrease of 2% compared to the same
period in 2022 (9M22: 859,900mt). Over the last two years, 2,370
hectares of old palms had been felled in Bengkulu and North
Sumatera with 1,100 hectares replanted in 2022 and another 869
hectares replanted for the first nine months of 2023 resulting in
the decline in FFB production. FFB production from discontinued
operations in South Sumatera in 2023 was 21,580mt (9M22: 37,000mt).
FFB bought-in was 805,030mt, a decrease of 5% in comparison with
the same period in 2022 (9M22: 845,850mt). The drop in external
crop purchases was primarily driven by intense competition for
external crops in Riau and lower crop trend in Bengkulu. Total
Crude Palm Oil ("CPO") produced was 338,840mt, a decrease of 4%
compared to the corresponding period in 2022 (9M22: 351,460mt) due
to lower FFB supplied from both our own estates and bought-in
crops.
CPO price ex-Rotterdam averaged $983/mt for the first nine
months of 2023. This represents a significant decrease of 33% from
the average price of $1,471/mt recorded in the corresponding period
in 2022. Prices remain volatile as CPO price ex-Rotterdam closed at
$920/mt on 18 October 2023 compared to $1,060/mt at the start of
the year. Our Group's average ex-mill price for CPO for the first
nine months of the year was also lower by 19% at $729/mt (9M22:
$896/mt). The Group also experienced a decrease in palm kernel
price which was on average lower by 46% at $342/mt against $635/mt
last year. Lower CPO prices were attributed to higher inventory of
vegetable oils and the abundance of cheap sunflower oils from
Russia and Ukraine, as these two top producers took advantage of
their depreciated currency to grab larger share of the edible oils
market.
The Group's balance sheet remains strong with no outstanding
bank loans. The Group had net cash of $226.1m at 30 September 2023
(3Q22: $252.6m). The reduction in the cash balance takes into
account the acquisition and consolidation of AEP's holding in two
Indonesian subsidiaries for $25.2m, as announced on 12 July 2023,
$5.9m remitted in advance to the Company's Registrar for interim
dividends payable on 6 October 2023 and a $4.1m remitted to the
Company's broker for its irrevocable commitment to purchase its
Ordinary Shares, as announced on 24 August 2023. During this
period, the Board also approved an investment of $10m into some
short-term capital protected securities for a better yield.
Development
The Group's total landholding from its continuing operations
comprises some 90,667 hectares of which the planted area stands at
around 68,414 hectares. The Group's new planting and replanting for
the nine months ended 30 September 2023 totalled 1,452 hectares
(including Plasma) against 1,367 hectares for the corresponding
period last year . Plasma planting for the period was 126 hectares
(9M22: 201 hectares). New planting in Kalimantan was temporary
halted due to the extreme dry conditions in the last two
months.
As previously announced, on 5 July 2023, the Group has completed
the disposal of the three loss-making South Sumatera estates. The
affected employees were retrenched, closely supervised by the local
labour department and witnessed by representatives from the labour
unions. The new owner has officially taken over the operations of
these plantations.
The BioCNG plant in North Sumatera is nearing completion with
some piping works remaining. Equipment are being tested with the
possibility of commencing production before the end of 2023.
The construction of the seventh mill in North Sumatera has been
completed. Test runs are being conducted processing small batches
of in-house FFB to test the equipment. The palm oil mill effluent
is currently stored in open tanks away from the work areas while
final checks are being carried out to test the recently repaired
Anaerobic Tank Digesters for leakages. The bacteria in the
anaerobic effluent treatment plant will also need to be cultivated
and build-up before the whole system is fully functional. The mill
is expected to start buying external crop for processing by the
first quarter of 2024.
There is, however, little progress on the construction of the
eighth mill in Kalimantan as we await the relevant government
authorities to approve the environmental impact assessment study
before commencing the earthworks.
Outlook
CPO prices are expected to be weak for the remaining part of the
year as the industry enters traditional period of more robust crop
production. The reported high palm oil inventory, together with the
abundance of other competitive vegetable oils, coupled with a lower
demand from the major importers are likely to suppress any upward
movement in CPO prices for the last quarter of 2023.
For further enquiry, contact:
Anglo-Eastern Plantations
P lc
Dato' John Lim Ewe Chuan +44 (0) 20 7216 4621
Panmure Gordon (UK) Limited
Dominic Morley / Amrit Mahbubani +44 (0) 20 7886 2500
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.
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END
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