AGM Statement

RNS Number : 1041G

Anglo-Eastern Plantations PLC

26 June 2012

 

26 June 2012

For release at 7.00am

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

AGM Statement

The twenty-seventh Annual General Meeting of Anglo-Eastern Plantations Plc will be held at the offices of UHY Hacker Young LLP, Quadrant House, 4 Thomas More Square, London E1W 1YW at 11.00am today.  AEP owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 130,000 hectares producing mainly palm oil and some rubber of which approximately 57,973 hectares are planted.  At the meeting, the Chairman will comment on current operational performance and development as well as the outlook for the remainder of 2012 as follows:-

Operational and financial performance

For the first five months ended 31 May 2012, our own production of fresh fruit bunches ("FFB") was 273,000mt, an increase of 6% compared to the same period in 2011 (1^st five months 2011:258,000mt). FFB bought in was 201,600mt, 4% lower in comparison with the same period in 2011 (1^st five months 2011:209,300mt). Total Crude Palm Oil ("CPO") produced was 93,900mt, 2% better than the corresponding period in 2011 (1^st five months 2011:92,500mt) due to higher internal crop.

CPO CIF Rotterdam price averaged US$1,115/mt for the first five months to 31 May 2012, a decrease of 8% from the average of US$1,208/mt recorded in the first five months of 2011.

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$3.02m at 31 May 2012 (1^st five months 2011:US$15.0m).

Development

The Group new planting for the first five months ended 31 May 2012 was 860 hectares (1^st five months 2011:1,800 hectares). The slower rate of new planting is due to delay in the issuance of land release permit (Izin Pelepasan) for two plantations in Indonesia.

The construction of palm oil mills in North Sumatera and Central Kalimantan will commence by third quarter of 2012.

As announced previously the biogas and biomass project planned for Blankahan Mill, costing US$4.5m, will start in the third quarter of 2012 upon conclusion of agreements with the selected contractor. This project will enhance our waste management treatment and at the same time mitigate the emissions of biogas.

Outlook

The CPO price ended May 2012 at US$1,030/mt , representing a 14% decrease from its high of US$1,195/mt recorded in April 2012. The decline is mainly due to renewed concerns on China's slower economic growth and the European financial crisis which have dampened investors' confidence on global commodity markets.

The Indonesian Rupiah has weakened against the US dollar by about 4% 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 2012.

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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