Anglo-Eastern Plantations PLC Trading Statement (2534F)
November 13 2020 - 2:34AM
UK Regulatory
TIDMAEP
RNS Number : 2534F
Anglo-Eastern Plantations PLC
13 November 2020
13 November 2020
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 in respect of the third quarter since 30 June
2020.
Operational and financial performance
For the first nine months ended 30 September 2020, our own
production of fresh fruit bunches ("FFB") was 812,460mt, an
increase of 6% compared to the same period in 2019 (9M19:
765,240mt). North Sumatera and Bengkulu plantations contributed
substantially to the increase of internal crop production with
improved weather conditions and young maturing palms. FFB bought-in
was 651,030mt, a decrease of 6% in comparison with the same period
in 2019 (9M19: 690,470mt) because of the intense competition for
external FFB. Total Crude Palm Oil ("CPO") produced was 295,330mt,
marginally lower than the corresponding period in 2019 (9M19:
296,600mt) due to lower oil extraction rate.
CPO price ex-Rotterdam averaged $665/mt for the first nine
months of 2020. This represents a significant increase of 26% from
the average price of $528/mt recorded in the corresponding period
of 2019. CPO prices have been climbing steadily since early June
2020 after the major economies relaxed their economic lockdown. CPO
ex-Rotterdam closed at $763/mt on 22 October 2020. However, it is
still lower by 16 % from $878/mt at the start of the year.
The Group's balance sheet remains strong. The Company's Long
Term Development Loans have been fully repaid as at 30 September
2020 (3Q19: $10.9m). The Group had net cash of $90.2m as at 30
September 2020 (3Q19: $81.2m).
Development
AEP has plantations across Indonesia and Malaysia, amounting to
some 128,200 hectares, of which approximately 72,696 hectares
(including Plasma) are planted. The Group's new planting for the
nine months ended 30 September 2020 totalled 1,776 hectares
(including Plasma) .
The contract for the civil and structural works for the seventh
mill in North Sumatera has been awarded and the works at site are
scheduled to begin in Q4 2020.
The construction of the fourth biogas plant in North Sumatera
has been completed but AEP is unable to sell the surplus
electricity generated as the national grid has suspended all uptake
due to lower electricity demand following the shutdown of many
economic activities during the virus pandemic in Indonesia.
Outlook
CPO prices are expected to be strong for the remaining part of
the year due to anticipated supply shortage because of the moderate
La Nina weather phenomenon and the surge in the price of soyabean
oil, a competing peer. However, there are rising concerns of a
second and third wave of coronavirus pandemic in key importing
countries which may affect market demand for palm oil.
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 +44 (0)20 7886 2954
Note: The information communicated in this announcement is
inside information for the purposes of Article 7 of Market Abuse
Regulation 596/2014.
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END
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