MARKET DEVELOPMENT
AEP Expects Profitability to Remain on Track
AEP Expects Profitability to Remain on Track
30/06/2015 (StockMarketWire.com) - Anglo-Eastern Plantations' board cautiously expects profitability and cash flow to remain in line with management forecasts, shareholders at the annual general meeting today will be told.
The group will say that for the first five months ended 31 May, its own production of fresh fruit bunches (FFB) was 311,950mt, a decrease of 1% compared to the corresponding period in 2014 (five months to May 2014: 316,580mt).
FFB bought in was 264,650mt compared with 251,500mt a year ago. Total crude palm oil (CPO) produced was 111,400mt, 3% lower than the corresponding period in 2014 (five months to May 2014: 114,270mt) due to lower extraction rate.
CPO CIF Rotterdam price averaged $662/mt for the first five months to 31 May, a decrease of 27% from the average of $903/mt recorded in the first five months of 2014. AEP's balance sheet remains strong with the company continuing to achieve positive cash flow generation. The company's long term development loans totaled $34.8m at 31 May 2015 (at 31 May 2014: $35m).
New planting for the first five months was 760 hectares (five months to May 2014: 747 hectares).
As indicated in the preliminary announcement on 30 April and the interim management statement on 26 May, new plantings remain behind schedule due to delays in finalising settlement of land compensation with villagers in Bengkulu, Bangka and Kalimantan.
The company says it is continuing with the somewhat protracted negotiations with the villagers' representatives, in full accordance with our obligations under Indonesian law, to achieve a fair and reasonable result for all parties.
The recently opened mill in Central Kalimantan has begun processing its own in-house crops with an initial capacity of 45mt/hr. The mill is presently running below its full capacity while rectifying the anticipated initial teething problems and to fine tuning its operation. We expect the mill to be performing at optimum capacity by September.
Looking ahead, it says the CPO price closed at $660/mt as at 15 June, representing a 6% decrease from the start of the year. The CPO price tumbled to $610/mt in January due to lower import of CPO by India and China, the two largest consumers, amidst a glut of soya oil.
It says the return of El Nino weather phenomenon since 2010 as forecasted by the Australian Bureau of Meteorology could however lift the CPO price. The extend of El Nino if it happens will induce moderate to severe drought in palm oil producing regions resulting in lower yield and crop production. It says: "We anticipate that CPO price will remain generally stable and the Board cautiously expects profitability and cash flow to remain in line with management forecasts for 2015."
At 8:38am: [LON:AEP] AngloEastern Plantations PLC share price was -6p at 612.5p
The group will say that for the first five months ended 31 May, its own production of fresh fruit bunches (FFB) was 311,950mt, a decrease of 1% compared to the corresponding period in 2014 (five months to May 2014: 316,580mt).
FFB bought in was 264,650mt compared with 251,500mt a year ago. Total crude palm oil (CPO) produced was 111,400mt, 3% lower than the corresponding period in 2014 (five months to May 2014: 114,270mt) due to lower extraction rate.
CPO CIF Rotterdam price averaged $662/mt for the first five months to 31 May, a decrease of 27% from the average of $903/mt recorded in the first five months of 2014. AEP's balance sheet remains strong with the company continuing to achieve positive cash flow generation. The company's long term development loans totaled $34.8m at 31 May 2015 (at 31 May 2014: $35m).
New planting for the first five months was 760 hectares (five months to May 2014: 747 hectares).
As indicated in the preliminary announcement on 30 April and the interim management statement on 26 May, new plantings remain behind schedule due to delays in finalising settlement of land compensation with villagers in Bengkulu, Bangka and Kalimantan.
The company says it is continuing with the somewhat protracted negotiations with the villagers' representatives, in full accordance with our obligations under Indonesian law, to achieve a fair and reasonable result for all parties.
The recently opened mill in Central Kalimantan has begun processing its own in-house crops with an initial capacity of 45mt/hr. The mill is presently running below its full capacity while rectifying the anticipated initial teething problems and to fine tuning its operation. We expect the mill to be performing at optimum capacity by September.
Looking ahead, it says the CPO price closed at $660/mt as at 15 June, representing a 6% decrease from the start of the year. The CPO price tumbled to $610/mt in January due to lower import of CPO by India and China, the two largest consumers, amidst a glut of soya oil.
It says the return of El Nino weather phenomenon since 2010 as forecasted by the Australian Bureau of Meteorology could however lift the CPO price. The extend of El Nino if it happens will induce moderate to severe drought in palm oil producing regions resulting in lower yield and crop production. It says: "We anticipate that CPO price will remain generally stable and the Board cautiously expects profitability and cash flow to remain in line with management forecasts for 2015."
At 8:38am: [LON:AEP] AngloEastern Plantations PLC share price was -6p at 612.5p