Interim Management Statement

RNS Number : 1638H

Anglo-Eastern Plantations PLC

25 May 2011

 



25 May 2011

Anglo-Eastern Plantations Plc

Interim Management Statement

Anglo-Eastern Plantations Plc ("AEP" or "the Company"), which owns approximately 133,000 hectares of plantation land, primarily in Indonesia, and operates approximately 53,000 hectares of developed plantations, today announces its Interim Management Statement in respect of the period since 31 December 2010.

Operational and financial performance

For the first three months ended 31 March 2011, our own production of fresh fruit bunches ("FFB") was 146,600mt, an increase of 23% compared to the same period in 2010 (1Q10:119,400mt). FFB bought in was 118,000mt, 29% higher in comparison with the same period in 2010 (1Q10:91,200mt). Total Crude Palm Oil ("CPO") produced was 52,500mt, 25% better than the corresponding period in 2010 (1Q10:42,000mt) mainly due to better FFB yield from favourable weather and an increase in FFB bought in.

CPO CIF Rotterdam price averaged US$1,244/mt for the first three months to 31 March 2011, an increase of 53% from the average of US$812/mt recorded in the first quarter 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$16.7m at 31 March 2011 (1Q10:US$24.7 m).

Development

The Group's planting programme for the current year is running on schedule. 1,000 hectares have already been planted during the first three months of 2011.

Mr. Chan Teik Huat has retired as Non-Executive Chairman as well as a Director of the Company with effect from 31 January 2011.

Madam Lim Siew Kim has been appointed as Non-Executive Chairman of the Company with effect from 31 January 2011.

Mr. Nik Din Bin Nik Sulaiman appointment as Non-Executive Director expired on 31 March 2011 and has been extended for another two years by the board.

Outlook

The CPO price ended at US$1,155/mt in March 2011, representing a 13% 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

 

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