Anglo-Eastern Plantations PLC Trading Statement (0424W)
April 20 2021 - 5:23AM
UK Regulatory
TIDMAEP
RNS Number : 0424W
Anglo-Eastern Plantations PLC
20 April 2021
20 April 2021
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Trading Statement
Anglo-Eastern Plantations, a major producer of palm oil and some
rubber across Indonesia and Malaysia, today announces a trading
update in respect of the first quarter ended 31 March 2021.
Announcement
With the current lockdown in the United Kingdom ("UK") and
similar measures in Indonesia and Malaysia, known as the Movement
Control Order ("MCO"), together with travelling restrictions and
some form of quarantine requirements, it has not been logistically
possible for our group auditors to carry out their audit on site in
Indonesia and Malaysia, which would have been their normal
practise. As a result, BDO London have to review the component
auditors work remotely which has impacted on the audit timetable.
Accordingly, the Board is compelled to delay the announcement of
the 2020 audited results to around mid-May 2021, which would enable
the Company to give the required notice to have its AGM by the end
of June 2021. This is in line with the temporary relief granted by
the Financial Conduct Authority for listed companies in the UK to
allow for more time to prepare financial statements due to the
pandemic.
Although Malaysia and some parts of Indonesia are in lockdown,
our plantations and mills are operating close to normal. To date we
have reports of a few Covid-19 infections in our plantations, mills
and offices whereby standard operating procedures including
quarantine, contact tracing and prompt medical treatment were
applied.
Operational and financial performance
For the first three months ended 31 March 2021, our own
production of fresh fruit bunches ("FFB") was 281,900mt, an
increase of 14% compared to the same period in 2020 (3M20:
246,600mt). The higher production was due to improved yield from
the young palms in North Sumatera and Kalimantan. This was in
addition to 2,847 hectares of newly matured planting mostly from
the same regions as reported earlier. FFB bought-in was also higher
at 278,500mt (3M20: 183,200mt), an increase of 52%. As a result,
CPO production was higher by 30% at 114,900mt compared to 88,600mt
last year.
The CPO price ex-Rotterdam averaged $1,078/mt for the first
three months to 31 March 2021. This represents an increase of 47%
from the average price of $731/mt recorded in the first quarter of
2020 and was above $1,014/mt at the start of the year. As a result,
the mill enjoyed a higher ex-mill price of $673/mt compared to
$596/mt for the same period last year.
The Group's balance sheet remains strong with the Long Term
Development Loans fully repaid as at 31 March 2021 (31 March 2020:
$5.5m). The Group has net cash of $142.3m as at 31 March 2021.
Development
AEP has plantations across Indonesia and Malaysia, amounting to
some 128,000 hectares, of which approximately 73,544 hectares
(including Plasma) are planted. The Company's new planting for the
three months ended 31 March 2021 totalled 442 hectares (3M20: 548
hectares) including Plasma.
The civil and structural works for the seventh mill in North
Sumatera are progressing rapidly and are expected to be completed
by the end of first quarter of 2022. Meanwhile, mechanical works
for the same mill totalling $4.65m was also awarded with completion
targeted for the second quarter of 2022.
Outlook
The CPO price ex-Rotterdam started the year at $1,014/mt. Since
then, it has trended upwards to close at $1,180/mt on 13 April
2021. Palm oil prices remain relatively stable due to low inventory
and higher demand before the Muslim Ramadan festival. We,
nevertheless, expect a pullback in the CPO price as the crop
production improves further from the second half of the year.
Note: The information communicated in this announcement is
inside information for the purposes of Article 7 of Market Abuse
Regulation 596/2014.
For further enquiry, contact:
Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon (UK) Limited
Dominic Morley +44 (0)20 7886 2954
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END
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