TIDMNBPO
RNS Number : 6983N
New Britain Palm Oil Limited
30 July 2014
30 July 2014
NEW BRITAIN PALM OIL LIMITED
("NBPOL", the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(UNAUDITED)
New Britain Palm Oil Limited (LSE: NBPO), one of the world's
largest fully integrated producers of sustainable palm oil, today
announces its unaudited interim results for the six months ended 30
June 2014.
6 months ended 6 months ended
30 June 2014 30 June 2013
USD (m) USD (m)
Revenue 337.9 308.6
Cost of Sales (195.4) (207.4)
--------------- ---------------
Gross Profit 142.5 101.2
Other Income 0.8 0.8
Net Gain on Recognition of Agricultural
Products 17.4 16.6
Net Foreign Exchange Gains/(Losses)* 3.0 (14.2)
Distribution Costs (37.7) (39.0)
Administrative Expenses (43.6) (46.3)
Net Finance Costs (4.2) (5.0)
--------------- ---------------
Profit Before Tax (excluding
IAS 41) 78.2 14.1
FFB Produced - own plantations
(Mt) 941,946 830,624
FFB Processed (Mt) 1,303,383 1,160,499
CPO Produced (Mt) 290,514 254,633
PKO Produced (Mt) 29,339 25,345
Average CPO price per Mt achieved
(USD) 935 889
Average PKO price per Mt achieved
(USD) 1,329 934
(Note: USD-PNG Kina exchange rates for the six months to 30 June
2014 and 30 June 2013 averaged 0.3794 and 0.4600 respectively)
*Net foreign exchange gains/(losses) include approximately USD
5.1 million of unrealised non-cash foreign exchange gains (2013:
USD 18.2 million losses)
Financial results
-- Revenue increased by 9.5% to USD 337.9 million (H1 2013: USD 308.6 million)
-- Profit before tax increased by 454.6% to USD 78.2 million (H1
2013: USD 14.1 million) excluding the effects of revaluing
biological assets under IAS 41
-- Profit before tax increased by 126.3% to USD 73.1 million (H1
2013: USD 32.3 million) excluding the effects of revaluing
biological assets under IAS 41 and unrealised non-cash foreign
exchange gains/(losses)
-- Basic EPS ofUSD 38.9 cents per share (H1 2013: USD 4.4 cents
per share) excluding the effects of revaluing biological assets
under IAS 41
-- EBITDA, excluding the effects of revaluing biological assets
under IAS 41, of USD 115.8 million (H1 2013: USD 54.2 million)
-- EBITDA, excluding the effects of revaluing biological assets
and net foreign exchange gains/(losses), of USD 112.8 million (H1
2013: USD 68.4 million)
-- Gross margin of 42.2% (H1 2013: 32.8%) reflecting higher
selling prices coupled with cash cost reductions and the
depreciation of the Papua New Guinea Kina against the US Dollar
-- Net debt at 30 June 2014 of USD 264.0 million (31 December 2013: USD 241.7 million)
-- Subsequent to the period end, an interim dividend for 2014 of
USD 15 cents per share was declared payable on 21 November 2014
Operational results
-- During the first half of 2014, a record total of 1,303,383
tonnes of Fresh Fruit Bunches (FFB) were processed (H1 2013:
1,160,499 tonnes), including 361,437 tonnes from smallholders (H1
2013: 329,874 tonnes)
-- Total oil production in the period was a record 319,853
tonnes (H1 2013: 279,978 tonnes), with 290,514 tonnes of Crude Palm
Oil (CPO) and 29,339 tonnes of Palm Kernel Oil (PKO) (H1 2013:
254,633 tonnes and 25,345 tonnes respectively)
-- As at 30 June 2014, the Group had shipped 295,341 tonnes of
all oils at USD 986/tonne (H1 2013: 284,552 tonnes at USD
907/tonne)
-- The Group's crude palm oil extraction rate for the period was 22.29% (FY 2013: 22.15%)
-- The Group's palm product extraction rate for the period was 27.91% (FY 2013: 27.50%)
-- Our Liverpool refinery continues to grow sales volumes in
both the bulk and bakery sectors with a record level of fully
traceable and certified sustainable palm oil delivered to customers
in the first half
Commenting on the results, Mr Nick Thompson, Chief Executive
Officer, said:
"The Group's operational performance for the first half of 2014
was very strong with record production of FFB and total oils which,
together with better extraction rates, higher selling prices
achieved and lower costs of production, resulted in a profit before
tax of USD 73.1 million excluding unrealised non-cash foreign
exchange gains.
In the first half of 2014, the Group processed 1,303,383 tonnes
of FFB, some 12.3% higher than the same period last year, including
361,437 tonnes from smallholders (2013: 329,874 tonnes). CPO
extraction rates during the period averaged 22.29%, as compared to
the corresponding period in 2013 of 21.95%. As a result of higher
FFB production and higher extraction rates, 290,514 tonnes of CPO
was produced, some 14.1% higher than the same period last year.
Palm Kernel Oil ("PKO") production was 29,339 tonnes, some 15.8%
higher than the same period last year.
The lower PNG Kina during the period continued to mitigate some
of the cost pressure on our domestic wages and locally consumed
services in US Dollar terms. However, in early June the Central
Bank of PNG instructed foreign exchange dealers in PNG to quote the
USD-PNG Kina exchange rate within 75 basis points either side of
the official reference rate (being 0.4130). This effectively
increased the value of the PNG Kina by circa 18% from its low of
0.3500 in May. This has resulted in net currency gains of USD 3.0
million in the first half as compared to losses of USD 14.2 million
in the same period last year. These gains include USD 5.1 million
of non-cash unrealised exchange gains on restatement of USD
borrowings. The official reference rate has subsequently been
lowered by the Central Bank in small increments, with the PNG Kina
currently trading at 0.4085.
Palm oil prices during the period have been trading in a broad
range between USD 830 and USD 990 per tonne. While the outlook for
palm oil demand remains robust, the record supply of alternative
vegetable oils has resulted in current prices trading at their
lowest levels so far this year. It also appears less likely that an
"El Niño" event will have a materially negative impact on global
palm oil production, as was previously predicted by climate models.
On a positive note, increasing local consumption in Malaysia and
Indonesia and a strengthening of the global economy continue to be
supportive for longer term pricing. In the context of current
prices, we are pleased to have sold or priced forward approximately
81,000 tonnes of CPO for the remainder of 2014 at an average price
of USD 908/tonne."
Enquiries:
New Britain Palm Oil Limited Tel: (UK): +44 (0)20 7472 5936
Nick Thompson (Chief Executive Tel (Singapore): +65 6227 6247
Officer)
Alan Chaytor (Executive Director)
Amir Mohareb (Chief Financial Officer)
Ben Oakley (Corporate Development
and IR)
Newgate Communications (PR Adviser) Tel: +44 (0)20 7680 6550
James Benjamin Email: nbpol@newgatecomms.com
Clotilde Gros
Georgia Lewis
Website: www.nbpol.com.pg
Notes to editors
NBPOL is a large scale integrated industrial producer of
sustainable palm oil in Australasia, headquartered in Papua New
Guinea ('PNG'). It has over 79,800 hectares of planted oil palm
estates, over 7,700 hectares of sugar cane and a further 9,200
hectares of grazing pasture; twelve oil mills; two refineries, one
in PNG, and one in Liverpool, UK; and a seed production and plant
breeding facility. The Company is listed on both the Main Market of
the London Stock Exchange and on the Port Moresby Stock Exchange in
PNG.
NBPOL is fully vertically integrated, producing its own seed
(which it also sells globally), planting, cultivating and
harvesting its own land, and processing and refining palm oil (both
in PNG and the UK). It also contracts directly with its end
customers in the EU and arranges shipping of its products.
NBPOL has high regard for the importance of its sustainability
credentials. It has achieved 100% certification of all estates,
mills and smallholders to the Roundtable on Sustainable Palm Oil
('RSPO') standard. NBPOL continues to be active in proving its
performance through its certification to ISO 14001 and its close
involvement with other innovative initiatives. The Company is a
certified supplier of sustainable palm oil from its entire
production base in PNG and Solomon Islands, under the RSPO
guidelines."
NEW BRITAIN PALM OIL LIMITED
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
(UNAUDITED)
Statutory results
Income Statement
Revenue increased by 9.5% over the comparative period to USD
337.9 million (H1 2013: USD 308.6 million), due to higher average
selling prices achieved and higher volumes shipped. The Group
shipped 295,341 tonnes of all oils at USD 986/tonne during the
first half of 2014 againt 284,552 tonnes at USD 907/tonne in the
prior year. As a result, the Group's revenues from palm products
are USD 33.1 million higher than the same period last year. Sugar
sales were 16,658 tonnes at an average price of USD 1,233/tonne (H1
2013: 14,814 tonnes at an average price of USD 1,579/tonne) with
revenues of USD 20.5 million, a decrease of USD 2.9 million (12.2%)
on last year. As sugar sales are denominated in PNG Kina, US Dollar
revenues have suffered from the depreciation in the local currency.
Seed revenues of USD 1.8 million are lower than the prior year (USD
3.1 million) driven by reduced demand and lower volumes of 2.2
million seeds sold versus 3.8 million in the first half of
2013.
Gross profit was USD 142.5 million, an increase of 40.8%, from
USD 101.2 million for the same period last year, reflecting higher
average selling prices, management's cost saving initiatives and
the depreciation in the PNG Kina against the US Dollar. By business
segment, our palm products business reflected a 44% gross margin
(USD 137.8 million) to date versus 34% (USD 95.3 million) for the
same period last year, whilst our sugar business reflected an 18%
gross margin (USD 3.6 million) versus 17% (USD 3.9 million) and our
seeds business 18% (USD 0.3 million) versus 40% (USD 1.2 million).
Cost of sales includes the cost of fruit purchased from
smallholders which increased in line with world prices of CPO and
PKO. During the first half of 2014, the Group paid USD 44.6 million
for 361,437 tonnes of smallholder fruit compared to USD 35.0
million for 329,874 tonnes in the same period last year. Cost of
sales also includes cultivation costs, milling costs, refining
costs, labour costs and depreciation, most of which were positively
impacted by the higher FFB production from our own plantations and
the higher throughput of FFB at our mills.
Other gains/(losses) include net foreign exchange gains of USD
3.0 million as compared to losses of USD 14.2 million in the same
period last year. Also included in other gains is the net gain
arising on recognition of agricultural products transferred to
inventories at the end of the period, reflecting the expected
margin on closing inventories with the actual cost of production
reflected as part of cost of sales.
Distribution costs were lower by USD 1.3 million (3.3%) in the
the first half as compared to the same period last year even though
the Group shipped some 11,000 tonnes more oil. On a per tonne of
oil shipped basis, distribution costs are 6.3% lower than the first
half of 2013 with average freight costs to our customers at USD 104
per tonne as compared to USD 111 per tonne for the same period last
year.
Administrative expenses were lower by USD 2.7 million (5.8%) in
the first half as compared to the same period last year reflecting
cost saving initiatives for wages and general overheads, together
with the depreciation in the PNG Kina.
Operating profit including IAS 41 was USD 80.1 million compared
to USD 28.2 million for the comparative period last year,
reflecting the effect of IAS 41 losses in the year to date being
USD 2.3 million compared to IAS 41 gains of USD 9.1 million in H1
2013.
Net finance costs have reduced to USD 4.2 million compared to
USD 5.0 million in the corresponding period last year reflecting a
decrease in total borrowings (30 June 2014 of USD 272.1 million
versus 30 June 2013 of USD 287.4 million).
Profit before tax for the period was USD 75.9 million including
IAS 41 and USD 78.2 million excluding IAS 41 compared to H1 2013 of
USD 23.2 million including IAS 41 and USD 14.1 million excluding
IAS 41. Profit before tax for the full year of 2013 excluding IAS
41 was USD 17.3 million.
Tax expense for the period was USD 20.2 million compared to USD
9.5 million for the same period last year, reflecting an effective
tax rate of 27% (compared to 41%).
Earnings per share for the six months ended 30 June 2014
including the effects of IAS 41 increased from USD 8.7 cents in H1
2013 to USD 37.6 cents for H1 2014. Earnings per share excluding
IAS 41 were USD 38.9 cents compared to USD 4.4 cents for the same
period last year.
Balance sheet and cashflow
The Company's balance sheet reflects cash balances of USD 8.1
million and total borrowings of USD 272.1 million of which USD
169.4 million pertains to the five year facility taken out in April
2011, USD 39.6 million short term working capital financing for the
Liverpool refinery, USD 37.1 million to RAIL and short term
borrowings of USD 26.0 million.
Trade and other receivables are significantly higher at USD
143.0 million compared to USD 85.2 million at the end of 2013,
reflecting the timing of shipments with over 85,000 tonnes of oil
shipped in May and higher average selling prices. Inventories
increased to USD 210.3 million compared to USD 171.4 million at the
end of 2013 mainly due to timing of shipments and movements in
price.
Net cash generated from operating activities was USD 23.2
million compared to USD 71.1 million for the same period last year
reflecting an increase in working capital (predominately trade
debtors following record shipments in May) of over USD 57 million
since the end of December. At the date of this announcement, over
USD 65 million in cash has been received during July (reflecting
oil sales debtor payments from the May shipments).
The Group had cash holdings at the end of June of USD 8.1
million (and short term borrowings of USD 26.0 million) - a net
"overdraft" of USD 17.9 million. This compares to the position at
31 December 2013 of USD 30.9 million cash holdings (and bank
overdrafts plus short term borrowings of USD 22.2 million) - a net
cash position of USD 8.7 million.
Long term incentive plan
In May 2012, the Company introduced a new executive incentive
scheme known as the New Britain Palm Oil Limited Long-Term
Incentive Plan (the "LTIP") which was approved by shareholders at
the 2012 Annual General Meeting.
The following table summarises the total equity awards currently
outstanding under the LTIP. All awards remain unvested and are
subject to continued employment during the vesting period and
sucessful achievement of the performance hurdles set out in the
plan.
Date of Equity Total Equity Number of Total Equity Vesting Period
Award Awarded (number Employees Awards Outstanding Expiry Date
of NBPOL shares) Receiving as at 30 June
Awards 2014
---------------- ------------------ ----------- -------------------- ---------------
28 June 2012 1,619,160 326 1,301,751 28 June 2015
---------------- ------------------ ----------- -------------------- ---------------
28 November 28 November
2013 1,513,592 309 1,459,760 2016
---------------- ------------------ ----------- -------------------- ---------------
27 May 2014 1,510,730 308 1,510,730 27 May 2017
---------------- ------------------ ----------- -------------------- ---------------
The total equity awards outstanding with respect to the 2012 and
2013 awards are lower than the amount originally awarded due to
employee resignations and terminations during the vesting
period.
The Group will assess at year end the potential value of shares
that will need to be issued in June 2015 and recognise a long term
incentive plan reserve within equity and reflect this non-cash cost
within administrative expenses.
Dividend timetable
Subsequent to the period end, the Board declared an interim
dividend for 2014 of USD 15 cents per share with the dividend
timetable as follows:
Ex-dividend date: 16 October 2014
Record date: 17 October 2014
Payment date: 21 November 2014
Outlook
NBPOL enters the second half with 81,000 tonnes of CPO sold or
priced forward for the remainder of 2014 at an average price of USD
908/tonne. The Group has returned to normalised production and
extraction rates during the period and several cost saving
initiatives now embedded in the business will mitigate some of
negative pressure from the revaluation of the local currency. The
Group remains focussed on controlling unit cash costs of production
and improving margins, and expects to process circa. 45% of full
year FFB production in the second half of the year in line with
historical performance.
World CPO prices have declined subsequent to the end of the half
year despite stocks held in the global supply chain remaining
relatively low. The Group remains well positioned to benefit from
the continued strong demand for high grade palm oil products and in
particular the increasing customer demand for full traceability and
certified sustainablilty.
NEW BRITAIN PALM OIL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2014
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
Notes 2014 2013 2013
USD'000 USD'000 USD'000
Revenue 2 337,939 308,654 558,652
Cost of sales (195,431) (207,444) (366,610)
---------------------- ---------- -------------------------
Gross profit 142,508 101,210 192,042
Net gain/(loss) arising from
changes in fair value of biological
assets 4 (2,298) 9,076 53,678
Other income 2 816 794 2,342
Other gains 2 20,404 2,448 (9,368)
Distribution costs (37,739) (39,007) (71,767)
Administrative expenses (43,595) (46,285) (86,344)
---------------------- ---------- -------------------------
Operating profit 80,096 28,236 80,583
Interest income 6 1 13
Finance costs (4,209) (5,015) (9,614)
---------------------- ---------- -------------------------
Net finance costs (4,203) (5,014) (9,601)
Profit before income tax 75,893 23,222 70,982
Income tax expense (20,202) (9,522) (20,922)
---------------------- ---------- -------------------------
Profit for the period 55,691 13,700 50,060
---------------------- ---------- -------------------------
Other comprehensive income
Items that will subsequently
be reclassified to profit and
loss:
Cash flow hedges (3,041) 1,551 440
Currency translation differences 37,977 (71,136) (148,929)
Income tax relating to components
of other comprehensive income 912 (465) (132)
---------------------- ---------- -------------------------
Other comprehensive income
for the period, net of tax 35,848 (70,050) (148,621)
---------------------- ---------- -------------------------
Total comprehensive income
for the period 91,539 (56,350) (98,561)
====================== ========== =========================
Profit for the period is attributable
to:
Equity holders of the company 56,145 13,046 47,653
Non-controlling interest (454) 654 2,407
---------------------- ---------- -------------------------
55,691 13,700 50,060
====================== ========== =========================
Total comprehensive income
for the period is attributable
to:
Equity holders of the company 92,537 (58,774) (104,429)
Non-controlling interest (998) 2,424 5,868
---------------------- ---------- -------------------------
91,539 (56,350) (98,561)
====================== ========== =========================
Earnings per share for profit
for the period attributable
to the equity holders of the
company: 8 $ $ $
- Basic 0.376 0.087 0.319
- Diluted 0.376 0.087 0.319
Earnings before net gain/(loss) arising from changes in fair value
of biological assets are shown in Note 8.
NEW BRITAIN PALM OIL LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2014
Unaudited Unaudited Audited
As at 30 As at 30 As at 31
June June December
2014 2013 2013
Notes USD'000 USD'000 USD'000
NON CURRENT ASSETS
Property, plant and equipment 3 776,822 825,496 755,425
Biological assets 4 374,955 351,516 370,206
Intangible assets 49,048 52,370 47,084
1,200,825 1,229,382 1,172,715
---------------------- ---------- ---------------------
CURRENT ASSETS
Cash and cash equivalents 5 8,130 23,103 30,925
Trade and other receivables 143,008 115,916 85,175
Biological assets 4 25,832 30,357 16,207
Inventories 210,268 175,023 171,411
Derivative financial instruments 7 1,055 7,095 4,096
388,293 351,494 307,814
---------------------- ---------- ---------------------
TOTAL ASSETS 1,589,118 1,580,876 1,480,529
---------------------- ---------- ---------------------
NON CURRENT LIABILITIES
Borrowings 6 179,928 195,674 179,934
Deferred income tax liabilities 297,784 312,641 286,999
477,712 508,315 466,933
---------------------- ---------- ---------------------
CURRENT LIABILITIES
Borrowings 6 92,147 91,697 92,698
Trade and other payables 42,575 46,025 47,918
Current income tax liabilities 27,503 8,246 6,709
162,225 145,968 147,325
---------------------- ---------- ---------------------
TOTAL LIABILITIES 639,937 654,283 614,258
---------------------- ---------- ---------------------
NET ASSETS 949,181 926,593 866,271
====================== ========== =====================
SHAREHOLDERS' EQUITY
Issued capital 180,333 180,333 180,333
Other reserves 107,337 152,381 70,649
Retained earnings 646,518 581,332 599,298
934,188 914,046 850,280
Non-controlling interest in
equity 14,993 12,547 15,991
---------------------- ---------- ---------------------
TOTAL EQUITY 949,181 926,593 866,271
====================== ========== =====================
NEW BRITAIN PALM OIL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 JUNE 2014
Attributable to equity holders of
the Company
--------------------------------------------------------------
Issued Other Retained Non-controlling Total
Capital Reserves Earnings Total Interest Equity
Notes USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
CONSOLIDATED
Balance at 1
January 2013 180,333 224,201 568,286 972,820 10,123 982,943
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Comprehensive
income
Profit - - 13,046 13,046 654 13,700
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Other
comprehensive
income
Cash flow hedges,
net of tax - 1,086 - 1,086 - 1,086
Currency translation
differences - (72,906) - (72,906) 1,770 (71,136)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total other
comprehensive
income - (71,820) - (71,820) 1,770 (70,050)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total comprehensive
income - (71,820) 13,046 (58,774) 2,424 (56,350)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total
transactions
with owners - - - - - -
--------------- ------- ------------------- --------- ------------------- --------- ------------------ ---------
Balance at 30
June 2013 180,333 152,381 581,332 914,046 12,547 926,593
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Comprehensive
income
Profit - - 34,607 34,607 1,753 36,360
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Other
comprehensive
income
Cash flow hedges,
net of tax - (778) - (778) - (778)
Currency translation
differences - (79,484) - (79,484) 1,691 (77,793)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total other
comprehensive
income - (80,262) - (80,262) 1,691 (78,571)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total comprehensive
income - (80,262) 34,607 (45,655) 3,444 (42,211)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Transactions
with owners
Currency translation
differences - (1,470) - (1,470) - (1,470)
Dividends declared - - (16,641) (16,641) - (16,641)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total transactions
with owners - (1,470) (16,641) (18,111) - (18,111)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Balance at 31
December 2013 180,333 70,649 599,298 850,280 15,991 866,271
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Comprehensive
income
Profit - - 56,145 56,145 (454) 55,691
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Other
comprehensive
income
Cash flow hedges,
net of tax - (2,129) - (2,129) - (2,129)
Currency translation
differences - 38,521 - 38,521 (544) 37,977
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total other
comprehensive
income - 36,392 - 36,392 (544) 35,848
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total comprehensive
income - 36,392 56,145 92,527 (998) 91,539
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Transactions
with owners
Currency translation
differences - 296 - 296 - 296
Dividends declared - - (8,925) (8,925) - (8,925)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Total transactions
with owners - 296 (8,925) (8,629) - (8,629)
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
Balance at 30
June 2014 180,333 107,337 646,518 934,188 14,993 949,181
------------------------ ------------------- --------- ------------------- --------- ------------------ ---------
NEW BRITAIN PALM OIL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2014
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2014 2013 2013
Notes USD'000 USD'000 USD'000
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers 280,106 318,086 601,451
Cash payments to suppliers
and employees (248,804) (241,979) (444,121)
----------------------- ---------- -----------------------
31,302 76,107 157,330
Income tax paid (3,917) - (5,082)
Interest paid (4,209) (5,015) (9,614)
Interest received 6 1 13
Net cash generated from operating
activities 23,182 71,093 142,647
======================= ========== =======================
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant
and equipment (16,586) (20,321) (41,607)
Expenditure on plantation development (8,165) (9,748) (26,458)
Expenditure on biological assets (941) (1,197) (2,627)
Net cash used in investing
activities (25,692) (31,266) (70,692)
======================= ========== =======================
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowings 39,643 34,708 46,604
Repayment of borrowings (54,496) (63,124) (77,866)
Dividends paid to company shareholders (8,925) - (14,522)
----------------------- ---------- -----------------------
Net cash used in financing
activities (23,778) (28,416) (45,784)
======================= ========== =======================
NET INCREASE/(DECREASE) IN
CASH AND CASH EQUIVALENTS AND
BANK OVERDRAFTS (26,288) 11,411 26,171
Effects of exchange rate changes
on cash and cash equivalents
and bank overdrafts (283) 1,236 (652)
Add : Cash and cash equivalents
and bank overdrafts at the
beginning of the period 8,701 (16,818) (16,818)
----------------------- ---------- -----------------------
CASH AND CASH EQUIVALENTS AND
BANK OVERDRAFTS AT THE END
OF THE PERIOD 5 (17,870) (4,171) 8,701
======================= ========== =======================
RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH
GENERATED FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2014 2013 2013
USD'000 USD'000 USD'000
Profit after income tax 55,691 13,700 50,060
Add/(less) non-cash items:
Depreciation and amortisation 33,395 34,983 69,921
Net (gain)/loss arising from changes
in fair value of biological assets 2,298 (9,076) (53,678)
Net gain arising on recognition
of agricultural products (17,432) (16,681) (8,159)
Foreign currency exchange differences (5,134) 18,206 23,186
Deferred income tax 7,903 (13,757) 15,142
Add/(less) movements in working
capital items:
Decrease/(increase) in trade and
other receivables (47,565) 10,995 33,383
Increase/(decrease) in current
income tax liabilities 20,794 1,368 944
(Decrease)/increase in trade and
other payables (5,343) (3,343) (5,733)
Decrease in inventories (21,425) 34,698 17,581
Net cash generated from operating
activities 23,182 71,093 142,647
===================== ========== =====================
NEW BRITAIN PALM OIL LIMITED
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS TO 30 JUNE 2014
1. STATEMENT OF ACCOUNTING POLICIES
New Britain Palm Oil Limited was incorporated on 19 May 1967, as
a limited liability company in Papua New Guinea. New Britain Palm
Oil Limited and its subsidiaries (the "Group") operate in the oil
palm industry in Papua New Guinea, the Solomon Islands, Indonesia,
Singapore, Australia and the United Kingdom.
The address of New Britain Palm Oil Limited's registered office
is Bebere Plantation, Mosa, Kimbe, West New Britain Province, Papua
New Guinea.
New Britain Palm Oil Limited is listed on the Port Moresby Stock
Exchange and the London Stock Exchange.
This consolidated interim financial information does not
comprise statutory accounts within the meaning of section 240 of
the Companies Act 1985. Statutory accounts for the year ended 31
December 2013 were approved by the Board of Directors on 18 March
2014 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 237 of the Companies Act 1985.
This consolidated interim financial information for the six
months ended 30 June 2014 has been prepared in accordance with the
Disclosure and Transparency Rules of the Financial Services
Authority and with IAS 34, Interim Financial Reporting, and is
unaudited. The consolidated interim financial information should be
read in conjunction with the annual financial statements for the
year ended 31 December 2013, which have been prepared in accordance
with IFRS.
(a) Accounting policies
Except as described below, the accounting policies applied in
this consolidated interim financial information are consistent with
those of the annual financial statements for year ended 31 December
2013, as described in those annual financial statements.
(b) Foreign currency translation
(i) Functional and presentation currency
Items included in this consolidated interim financial
information are measured using the currency of the primary economic
environment in which the entity operates ('the functional
currency'). The consolidated interim financial information is
presented in US Dollars, which is New Britain Palm Oil Limited's
presentation currency and differs from its functional currency, the
Papua New Guinea Kina ("PNG Kina").
The balance sheet and the statement of changes in equity are
translated from PNG Kina to US Dollars at the closing rate existing
at the date of the balance sheet, which at 30 June 2014 is PGK1.00
= USD 0.4120 (31 December 2013: PGK 1.00 = USD 0.3955 and 30 June
2013: PGK 1.00 = USD 0.4399).
The statement of comprehensive income and the statement of cash
flows are translated from PNG Kina to US Dollars at the average
exchange rates prevailing during the period, which are considered
to approximate the actual exchange rate at the date of each
transaction. The average exchange rate at 30 June 2014 is PGK1.00 =
USD 0.3794 (31 December 2013: PGK 1.00 = USD 0.4313 and 30 June
2013: PGK 1.00 = 0.4600).
2. REVENUE AND OTHER INCOME
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2014 2013 2013
USD'000 USD'000 USD'000
Revenue
Sales revenue 338,055 308,026 561,782
Realisation of hedging instruments (116) 628 (3,130)
337,939 308,654 558,652
======================= ========== ======================
Other income
Other income 816 794 2,342
----------------------- ---------- ----------------------
816 794 2,342
======================= ========== ======================
Other gains
Net foreign exchange (loss)/gain 2,972 (14,233) (17,527)
Net gain arising on recognition
of agricultural products 17,432 16,681 8,159
----------------------- ---------- ----------------------
20,404 2,448 (9,368)
======================= ========== ======================
3. PROPERTY, PLANT AND EQUIPMENT
Land Plant
Plantation and and Capital Total
Development Buildings Equipment WIP
USD'000 USD'000 USD'000 USD'000 USD'000
As at 30 June 2014
Opening net book
amount 188,194 273,948 261,800 31,483 755,425
Additions 9,106 - 180 16,405 25,691
Disposals - - - - -
Transfers - 1,389 4,652 (6,041) -
Exchange differences 7,056 11,121 9,346 1,578 29,101
Depreciation (5,057) (4,970) (23,368) - (33,395)
---------------------- ---------------- ---------------- ----------------
Closing net book
amount 199,299 281,488 252,610 43,425 776,822
====================== ================ ================ ================ ===============
At cost 271,365 347,169 527,659 43,425 1,189,618
Accumulated
depreciation (72,066) (65,681) (275,049) - (412,796)
199,299 281,488 252,610 43,425 776,822
====================== ================ ================ ================ ===============
As at 31 December
2013
Opening net book
amount 205,930 321,303 274,353 88,149 889,735
Additions 26,458 166 1,626 39,815 68,065
Disposals - - (78) - (78)
Transfers - 15,581 71,487 (87,068) -
Exchange differences (33,662) (52,285) (37,016) (9,413) (132,376)
Depreciation (10,532) (10,817) (48,572) - (69,921)
---------------------- ---------------- ---------------- ----------------
Closing net book
amount 188,194 273,948 261,800 31,483 755,425
====================== ================ ================ ================ ===============
At cost 255,203 334,659 513,481 31,483 1,134,826
Accumulated
depreciation (67,009) (60,711) (251,681) - (379,401)
188,194 273,948 261,800 31,483 755,425
====================== ================ ================ ================ ===============
As at 30 June 2013
Opening net book
amount 205,930 321,303 274,353 88,149 889,735
Additions 9,748 - 2,402 23,562 35,712
Disposals - - (679) - (679)
Transfers - 6,454 35,620 (42,074) -
Exchange differences (13,636) (23,688) (20,671) (6,294) (64,289)
Depreciation (5,072) (4,941) (24,970) - (34,983)
---------------------- ---------------- ---------------- ----------------
Closing net book
amount 196,970 299,128 266,055 63,343 825,496
====================== ================ ================ ================ ===============
At cost 258,519 353,963 494,134 63,343 1,169,959
Accumulated
depreciation (61,549) (54,835) (228,079) - (344,463)
196,970 299,128 266,055 63,343 825,496
====================== ================ ================ ================ ===============
4. BIOLOGICAL ASSETS
Unaudited Unaudited Audited
As at 30 As at 30 As at 31
June June December
2014 2013 2013
USD'000 USD'000 USD'000
Oil palm trees
Balance at the beginning of
the year 363,761 375,431 375,431
Increases due to expenditure
to planted areas 688 1,105 2,627
Gain/(loss) arising from changes
in fair value 108,940 114,781 262,544
Decreases due to harvest (118,368) (115,714) (207,589)
Exchange differences 14,424 (29,571) (69,252)
----------------------- ---------- --------------------------
Balance at the end of the period 369,445 346,032 363,761
======================= ========== ==========================
Livestock
Balance at the beginning of
the year 8,862 10,184 10,184
Increases due to expenditure
on livestock 253 92 511
Gain/(loss) arising from changes
in fair value 5,736 5,367 3,453
Decreases due to sales (4,090) (3,686) (3,701)
Exchange differences 259 (989) (1,585)
-----------------------
Balance at the end of the period 11,020 10,968 8,862
======================= ========== ==========================
Growing cane
Balance at the beginning of
the year 13,790 18,355 18,355
Increases due to expenditure
on growing cane - - -
Gain/(loss) arising from changes
in fair value 12,440 16,301 12,437
Decreases due to harvest (6,956) (7,973) (13,977)
Exchange differences 1,048 (989) (3,025)
Balance at the end of the period 20,322 24,873 13,790
======================= ========== ==========================
Total
Balance at the beginning of
the year 386,413 403,970 403,970
Increases due to expenditure 941 1,197 3,138
Gain/(loss) arising from changes
in fair value 127,116 136,450 278,434
Decreases due to harvest and
sales (129,414) (127,374) (225,267)
Exchange differences 15,731 (32,370) (73,862)
Balance at the end of the period 400,787 381,873 386,413
======================= ========== ==========================
Classifed as:
Current 25,832 30,357 16,207
Non Current 374,955 351,516 370,206
----------------------- ---------- --------------------------
400,787 381,873 386,413
======================= ========== ==========================
Net gain/(loss) arising from
changes in fair value of biological
assets (2,298) 9,076 53,678
----------------------- ---------- --------------------------
5. CASH AND CASH EQUIVALENTS
Unaudited Unaudited Audited
As at 30 As at 30 As at 31
June June December
2014 2013 2013
USD'000 USD'000 USD'000
Cash and bank balances 8,130 23,103 30,925
----------- ----------- -----------
8,130 23,103 30,925
=========== =========== ===========
For the purposes of the statement of cash flows, the following
balances comprise cash and cash equivalents and bank overdrafts
at the end of the period:
Cash and bank balances 8,130 23,103 30,925
Short term borrowings (note
6) (26,000) (19,383) (13,247)
Bank overdraft (note 6) - (7,891) (8,977)
----------- ----------- -----------
(17,870) (4,171) 8,701
=========== =========== ===========
6. BORROWINGS
Unaudited Unaudited Audited
As at 30 As at 30 As at 31
June June December
2014 2013 2013
USD'000 USD'000 USD'000
Non-Current
Secured
Bank borrowings 179,928 195,674 179,934
========== ========== ==========
Current
Secured
Bank overdraft - 7,891 8,977
Short term borrowings 26,000 19,383 13,247
Bank borrowings 66,147 64,423 70,474
---------- ---------- ----------
92,147 91,697 92,698
========== ========== ==========
Total borrowings 272,075 287,371 272,632
========== ========== ==========
7. DERIVATIVE FINANCIAL INSTRUMENTS
Unaudited Unaudited Audited
As at 30 As at 30 As at 31
June June December
2014 2013 2013
USD'000 USD'000 USD'000
Current assets
- Forward contracts 1,055 7,095 4,096
========== ========== ==========
Non Current liabilities
- Forward contracts - - -
========== ========== ==========
Tonnes Average price US$/tonne
As at
As at 30 As at 31 As at As at As at 31
30 June June December 30 June 30 June December
2014 2013 2013 2014 2013 2013
CPO
(sell) 26,000 500 35,250 896 855 901
CPO
(buy) 25,500 500 1,500 869 855 915
PKO
(sell) 5,000 - 3,000 1,297 - 1,164
PKO
(buy) 4,000 - - 1,271 - -
RDBOL
(sell) 9,000 15,000 23,000 820 949 1,034
RDBOL
(buy) - - - - - 908
8. EARNINGS PER SHARE
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended to
30 June 30 June 31 December
2014 2013 2013
USD'000 USD'000 USD'000
Net profit attributable to
ordinary shareholders used
in basic and diluted EPS 56,145 13,046 47,653
Net (gain)/loss arising from
changes in fair value of biological
assets attributable to ordinary
shareholders, net of tax (*) 1,913 (6,422) (36,572)
Net profit attributable to
ordinary shareholders before
changes in fair value of biological
assets 58,058 6,624 11,082
========== ========== ============
Weighted average number of
ordinary shares ('000) used
in basic and diluted EPS 149,382 149,382 149,382
Basic EPS (USD/share) 0.376 0.087 0.319
Basic EPS before changes in
fair value of biological assets
(USD/share) 0.389 0.044 0.074
There is no difference between basic
and diluted EPS.
* The net gain arising from changes in fair value of biological
assets attributable to ordinary shareholders, net of tax is
reconciled to the income statement as follows:
Net (gain)/loss arising from
changes in fair value of biological
assets 2,298 (9,076) (53,678)
Income tax expense/(credit) (689) 2,723 16,103
---------- ---------- ------------
1,609 (6,353) (37,575)
Attributable to:
Ordinary shareholders 1,913 (6,422) (36,572)
Non-controlling interest (304) 69 (1,003)
---------- ---------- ------------
1,609 (6,353) (37,575)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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