AGM Statement

RNS Number : 3730H

Anglo-Eastern Plantations PLC

19 June 2013

 



19 June 2013

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

AGM Statement

The twenty-eighth Annual General Meeting of Anglo-Eastern Plantations Plc, owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 126,000 hectares producing mainly palm oil and some rubber of which approximately 59,650 hectares are planted, 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 2013 as follows:-

Operational and financial performance

For the first five months ended 31 May 2013, our own production of fresh fruit bunches ("FFB") was 269,000mt, a decrease of 1% compared to the same period in 2012 (1^st five months 2012:273,000mt). FFB bought in was 142,500mt, 29% lower in comparison with the same period in 2012 (1^st five months 2012:201,600mt) due to higher rainfall recorded in estates in Bengkulu region. Total Crude Palm Oil ("CPO") produced was 85,900mt, 9% lower than the corresponding period in 2012 (1^st five months 2012:93,900mt) due to lower bought-in crops.

CPO CIF Rotterdam price averaged U$852/mt for the first five months to 31 May 2013, a decrease of 24% from the average of U$1,115/mt recorded in the first five months of 2012.

AEP's balance sheet remains strong with the Company continuing to achieve positive cash flow generation. The Company's Long Term Development Loans totalled U$35m at 31 May 2013 (1^stfive months 2012:U$3.02m).

Development

The Group new planting for the first five months ended 31 May 2013 was 671 hectares (1^st five months 2012:860 hectares). As indicated in the preliminary announcement on 30 April 2013, new plantings remain behind schedule due to protracted negotiations over settlement of land compensation with villagers and a delay in the issuance of land release permit (Izin Pelepasan) for two plantations. However, one of these plantations has now obtained the necessary permit in April 2013 and shall proceed to prepare the land for planting.

As mentioned in the Interim Management Statement on 28 May 2013, The biogas and biomass project planned for a mill in North Sumatera is expected to cost up to U$4.5m. Production of the Dried Long Fibres from the waste empty fruit bunch will start in the fourth quarter of 2013. This project will utilize the mill waste to produce saleable end products while mitigating significantly the emission of biogas.

The earthworks for the mill in Kalimantan commenced in the fourth quarter of 2012 while civil and mechanical works is expected to begin in the third quarter of 2013. This mill is expected to be completed in first quarter of 2015 with an initial capacity of 45mt FFB/hr. The earthworks for a further mill in North Sumatera which started in the first quarter of 2013 is expected to progress with civil works in the fourth quarter of 2013. This mill is expected to be completed by the second quarter of 2015 with a final capacity of 60mt FFB/hr.

Outlook

The CPO price ended May 2013 at U$860/mt, representing a 1% decrease from its high of U$870/mt recorded in March 2013. The CPO price has generally been stable throughout this period.

The Indonesian Rupiah depreciated by about 1% against 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.

Barring any further drop in commodity prices, the Board is cautiously confident of reporting a satisfactory profit level and cash flow for the remainder of 2013.

For further enquiry, contact:

Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan	[phone]
Charles Stanley Securities
Russell Cook Karri Vuori	[phone]

 

END

 

 

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