AGM Statement

RNS Number : 8869I

Anglo-Eastern Plantations PLC

22 June 2011

 



22 June 2011

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

AGM Statement

The twenty-sixth Annual General Meeting of Anglo-Eastern Plantations Plc, which owns approximately 133,000 hectares of plantation land, primarily in Indonesia, and operates approximately 54,000 hectares of developed plantations, will be held at the offices of UHY Hacker Young LLP, Quadrant House, 4 Thomas More Square, London E1W 1YW at 11.00am today. At the meeting, the Chairman will comment on current operational performance and development as well as the outlook for the remainder of 2011 as follows:-

Operational and financial performance

For the first five months ended 31 May 2011, our own production of fresh fruit bunches ("FFB") was 258,000mt, an increase of 23% compared to the same period in 2010 (first five months 2010:209,200mt). FFB bought in was 209,300mt, 28% higher in comparison with the same period in 2010 (first five months 2010:163,200mt). Total Crude Palm Oil ("CPO") produced was 92,500mt, 25% better than the corresponding period in 2010 (first five months 2010:74,000mt) mainly due to better FFB yield from favourable weather and an increase in FFB bought in.

CPO CIF Rotterdam price averaged US$1,208/mt for the first five months to 31 May 2011, an increase of 48% from the average of US$814/mt recorded in the first five months of 2010.

AEP's balance sheet remains strong with the Company continuing to achieve positive cash flow generation. The Company's Long Term Development Loans totalled US$15.0m at 31 May 2011 (first five months 2010:US$24.5 m).

Development

The Group's planting programme for the current year is running on schedule. 1,800 hectares have already been planted during the first five months of 2011.

As announced previously Mr. Chan Teik Huat has retired as Non-Executive Chairman as well as a Director of the Company on 31 January 2011 and Madam Lim Siew Kim was appointed as Non-Executive Chairman.

Outlook

The CPO price ended at US$1,183/mt in May 2011, representing a 11% decrease from its high of US$1,335/mt recorded in February 2011. This is due to higher FFB production which leads to increase in inventories. High crude oil prices and a widening discount between CPO and soybean oil should provide near term support to CPO price. 

The Indonesian Rupiah has strengthened against the US dollar in the current period. To mitigate exposure to currency exchange volatility, the Group is continuing to manage its cash in dollar and local currency prudently, taking into consideration its dollar-denominated borrowings and operational cost currency requirements.

As the commodities price has been generally stable throughout this period and the demand for the Group's products remains strong, the Board is cautiously confident of reporting a satisfactory profit level and cash flow for the remainder of 2011.

For further enquiry, contact:

Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan	020 7216 4621
Charles Stanley Securities
Russell Cook Luke Webster	020 7149 6000

 

END

 

 

AGMDKBDDFBKKQAB