Anglo-Eastern Plantations PLC Interim Management Statement (2978X)
November 18 2014 - 3:00AM
UK Regulatory
TIDMAEP
RNS Number : 2978X
Anglo-Eastern Plantations PLC
18 November 2014
18 November 2014
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 127,800 hectares producing mainly palm oil and
some rubber of which approximately 62,560 hectares are planted,
today announces its Interim Management Statement in respect of the
period since 30 June 2014.
Operational and financial performance
For the first nine months ended 30 September 2014, our own
production of fresh fruit bunches ("FFB") was 644,200mt, an
increase of 13% compared to the same period in 2013 (9M13:
569,210mt). FFB bought-in was 481,500mt, which represents an
increase of 40% in comparison with the same period in 2013 (9M13:
345,000mt). Total Crude Palm Oil ("CPO") produced was 225,100mt,
20% higher than the corresponding period in 2013 (9M13: 188,300mt)
due to both higher FFB production and external FFB purchase.
CPO CIF Rotterdam price averaged $851/mt for the first nine
months to 30 September 2014. This represents an increase of 1% from
the average price of $845/mt recorded in the comparative period of
2013 but is below the $890/mt being the price at the start of
2014.
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 2014 (3Q13:
$35m).
Development
The Group's new planting for nine months ended 30 September 2014
totalled 1,900 hectares, of which 440 hectares comprise of
replanting, is behind our expected schedule. As reported previously
this was due primarily to our objective of seeking a satisfactory
settlement with villagers for land compensation payments. These
negotiations are continuing and the Management is confident that
some of these negotiations will be concluded successfully. A
replanting program covering 1,430 hectares in North Sumatrawas
necessary due to dropping yield as the trees are over 25 years of
age.
Construction of the biogas and biomass project for the mill in
North Sumatra has been completed and the plant has been fully
commissioned. The facility is now in production. Besides producing
dried long fibres for export, the plant will also produce biogas
which reduce the mill dependence on electricity and at the same
time mitigate the emission of greenhouse gas which is presently
discharged from effluent treatment in the anaerobic lagoons.
The construction of the 45mt/hr palm oil mill in Central
Kalimantan previously announced is expected to be commissioned in
Q2 2015.
Outlook
CPO price closed at $730/mt on 11 November 2014, representing a
18% decrease from $890/mt from the start of the year. The CPO price
has been on a downward trend from Q2 2014 due to higher global
oilseeds supplies particularly from bumper harvest of soybean and
rapeseed. CPO price further weakened as experts downgraded the
probability of El Nino weather phenomenon in 2014 which would have
reduced FFB production. The implementation of a higher mandatory
10% blending of biodiesel fuel in Indonesia was reported to be
progressing slowly and has further dampened CPO price.
However the CPO price has picked up slightly recently and demand
for the Group's products remains strong. The Board
thereforeanticipates that performance for the remainder of 2014
will be satisfactory and in line with management expectations.
Notwithstanding the recent changes to the Listing Rules, AEP
intends to continue to issue a quarterly statement to update
shareholders of progress across the Group.
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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