09/04/2010 (RTTNews) -  Oil palm and rubber cultivator Anglo-Eastern Plantations PLC (AEP.L: News ) reported Friday, in its preliminary results, a decline in profit for the year ended December 31, 2009, hurt primarily by a decrease in revenues on significantly lower market average prices for crude palm oil and rubber.

For fiscal 2009, the Anglo-Eastern's profit before taxation declined to US$62.08 million from US$77.87 million in the prior-year period.

The company, which owns about 123 thousand hectares of plantation land in Indonesia and Malaysia, reported annual profit attributable to equity holders of the parent of US$37.49 million or 94.99 cents per share from US$42.00 million or 104.8 cents per share in the comparable period of the past year.

The company noted that Biological Asset adjustment was a credit of US$0.88 million compared to US$1.35 million in 2008. Excluding the item, basic earnings per share slid 8.6% to 94.11 cents from 103.0 cents.

Group profit, which includes profit attributable to minority interests, rose year-on-year to US$45.15 million from US$51.98 million.

Revenues decreased to US$150.08 million from US$174.68 million, as the the market average price for crude palm oil or CPO dropped 28% to US$679 per metric ton from US$945 per mt in 2008. Average rubber prices also fell to US$1,800 per mt from US$2,500 per mt.

The firm noted that its 406 hectare of mature rubber contributed a pre-tax profit of $1.8 million in 2009 and expects its newly planted 270 hectare of rubber to start production in 2011.

Geographic segment-wise, estates fresh fruit bunch or FFB production in North Sumatra, Indonesia, increased 2% to 266,000 mt from 261,000 mt last year, and in Bengkulu, South Sumatra, surged 25% to 233,000 mt from 186,000 mt, reflecting a less severe drought effect and better road infrastructure. FFB production in the Riau region climbed 10% to 87,000 mt from 79,000 mt in 2008, driven by a fertilisation and rehabilitation program started in 2005/06. In Malaysia, FFB production was 32,000 mt, down 20% from 2008, because of shortage of labor.

Looking ahead, Anglo-Eastern said that prospects for fiscal 2010 will be cautiously optimistic, considering higher CPO price during the first quarter of 2010 amid global economy recovery. Further, the group expects a satisfactory profit level and cash flow for 2010, as it sees CPO demand to be sustainable during the year.

As of February 2010, the company's FFB production declined 8% from the same period in 2009, reflecting the unusual low cropping trend across the nation due to inclement weather.