Source - RNS
RNS Number : 2180J
Anglo-Eastern Plantations PLC
27 June 2017
 

27 June 2017

 

 

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

 

AGM Statement

 

 

The thirty-second Annual General Meeting of Anglo-Eastern Plantations Plc, which owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 128,600 hectares producing mainly palm oil and some rubber of which approximately 65,600 hectares are planted, will be held at the offices of UHY Hacker Young LLP, Quadrant House, 6th Floor, 4 Thomas More Square, London E1W 1YW at 11am today. At the meeting, the Chairman will comment on current operational performance and development as well as the outlook for the remainder of 2017.

 

Operational and financial performance

 

For the first five months ended 31 May 2017, our own production of fresh fruit bunches ("FFB") was 374,330mt, an increase of 19% compared to the same period in 2016 (five months to May 2016: 314,260mt). FFB bought in was 412,900mt, which was 105% higher in comparison with the same period in 2016 (five months to May 2016: 201,160mt). The production of FFB and external crop purchases were higher as the effects of drought and haze on the palm trees subside. Total Crude Palm Oil ("CPO") produced was 160,320mt, 48% higher than the corresponding period in 2016 (five months to May 2016: 108,510mt).

 

CPO CIF Rotterdam price averaged $751/mt for the first five months to 31 May 2017, 13% higher compared to the average price of $664/mt recorded in the first five months of 2016.

 

AEP's balance sheet remains strong with the Company continuing to achieve positive cash flow generation.

 

Development

 

The Group's new planting for the first five months ended 31 May 2017 was 809 hectares (five months to May 2016: 427 hectares). As reported previously and also recently in our 2016 Annual Report, new plantings remain behind schedule due to delays in finalising settlement of land compensation with villagers in Bengkulu, Bangka and Kalimantan. The villagers are seeking compensation beyond what the Group considers fair and reasonable resulting in protracted negotiations.

                                   

The Biogas plant in the Kalimantan mill has been completed. At this stage the trapped biogas is flared while waiting for the final electrical works to be completed for the power generation. The Biogas plant in the Bengkulu mill has been operating since second quarter of 2017. The surplus electricity generated from the biogas engines is sold to the state electricity company. These Biogas projects will further reduce the carbon foot print of the company.   

 

 

 

Outlook

 

The CPO price closed at $720/mt on 6 June 2017, representing a 10% decrease from the start of the year. The Group expects the CPO price to moderate as the CPO production picks up in the third quarter of 2017.

 

 

 

 

For further enquiry, contact:

 

Anglo-Eastern Plantations Plc


Dato' John Lim Ewe Chuan 

 +44 (0)20 7216 4621



 

Panmure Gordon


Andrew Godber

 

+44 (0)20 7886 2500

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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