M. P. Evans Group PLC AGM Statement (4685R)
June 15 2018 - 6:00AM
UK Regulatory
TIDMMPE
RNS Number : 4685R
M. P. Evans Group PLC
15 June 2018
M.P. EVANS GROUP PLC
("Group" or "M.P. Evans")
ANNUAL GENERAL MEETING
The annual general meeting of M.P.Evans Group PLC is being held
in London today. The following statement, presenting an update on
trading conditions and progress on the Group's activities since the
publication of the annual report in April, is being given at the
meeting by the chairman, Peter Hadsley-Chaplin:-
Crops
The crop of oil-palm fresh fruit bunches ("ffb") for the five
months ended 31 May 2018 was 228,000 tonnes from estates controlled
by the Group, some 27% higher than the 180,000 tonnes recorded for
the same period in 2017. Crops from the smallholder co-operatives
associated with the Group's new projects increased by 39% to 61,100
tonnes. This mainly results from the young 7-year average age of
the Group's palms whose yields are increasing as they mature, with
a residual continuing recovery in production throughout South East
Asia following the acute "El Nino" in 2015-16.
The growth in crop on the Group's estates has been particularly
pronounced on Bangka, where crops increased by 53% compared with
last year; those in Kalimantan were 43% higher, despite lower crops
than expected from Bumi Mas as the Group integrates this new estate
into its operations. In Sumatra, crops at the Pangkatan group of
estates have been similar to last year but those in Simpang Kiri
3,600 tonnes lower as an aggressive replanting programme continues.
The Group's 38% associate, PT Kerasaan Indonesia, reported crops
some 5% higher than for the first five months of 2017.
Production
The Group produced the equivalent of 77,500 tonnes of crude palm
oil ("CPO") during the first five months of 2018, including 71,000
tonnes in its own mills with the balance being the oil content of
ffb sold by the Group to third-party mills. This compared to 63,500
tonnes for the equivalent period in 2017 (of which 60,100 in its
own mills). Extraction rates continue at good levels: 24.1% in
Kalimantan; 23.1% in Bangka and 23.3% in Pangkatan. An important
contribution to production, notably in Bangka, was the continuing
purchase of ffb from third parties, amounting to 46,700 tonnes
(2017 - 43,700 tonnes) in addition to those produced on the Group's
own estates and associated smallholder co-operatives.
Prices
The average price of CPO (c.i.f. Rotterdam) for the first five
months of the year was US$663 per tonne, a reduction from the
US$732 per tonne during the equivalent period in 2017. In the
period to the end of May 2018, the Group realised an average price
at mill gate of US$564 per tonne compared with US$606 per tonne in
2017. Prices for palm kernels have also weakened, averaging US$417
per tonne (mill gate): somewhat lower than the US$503 per tonne in
the year to May 2017 as a period of unusually high palm kernel
prices draws to a close. The Indonesian Rupiah has weakened during
2018, which has resulted in an exchange rate loss, but which
benefits the Group through a reduction in the US Dollar cost of
producing CPO. The continuing recovery in South East Asian
production may exert some downward pressure on prices during the
second half of the year, but this is likely to be counter balanced
by a poor South American soybean harvest and emerging questions
over the yield from this season's rapeseed plantings in Europe
following a dry spell.
New planting
In Musi Rawas, 890 hectares were planted in the first five
months of the year, bringing the total planted area to just over
6,000 hectares in respect of Group and smallholder areas combined.
Planting is ongoing, and land compensation has already been settled
over a further 1,300 hectares. In Bangka, the total planted area
encompassing both Group and smallholder areas has reached 10,000
hectares and marks the completion of the development phase of this
project. Some new planting will take place in Kota Bangun, East
Kalimantan, once the planned bunds needed to manage the water on
this project have been finished.
Strategy
The Group's focus is on production of palm oil in Indonesia and
it is in control of substantially all its plantation assets. At the
end of 2017, the Group reported the acquisition of the
9,500-hectare Bumi Mas estate in East Kalimantan. The Group's
managers are on the ground, bringing its operating standards up to
those of its other estates. The board continues to seek to expand
its plantation hectarage and is confident in its ability to deliver
crop growth which is the foundation for improving results, and
increasing dividends, to shareholders.
15 June 2018
Enquiries:
M.P. Evans Group PLC Telephone: 01892 516333
Peter Hadsley-Chaplin - chairman
Tristan Price - chief executive
Matthew Coulson - finance director
Peel Hunt LLP Telephone: 020 7418 8900
Dan Webster
George Sellar
Nicole McDougall
finnCap Telephone: 020 7220 0500
Tim Redfern
Chris Raggett
Abigail Wayne
Hudson Sandler Telephone: 020 7796 4133
Charlie Jack
Bertie Berger
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGMFIMATMBJBBIP
(END) Dow Jones Newswires
June 15, 2018 07:00 ET (11:00 GMT)
M.p. Evans (LSE:MPE)
Historical Stock Chart
From Apr 2024 to May 2024
M.p. Evans (LSE:MPE)
Historical Stock Chart
From May 2023 to May 2024