R.E.A. Holdings plc

Further re update on selling prices

R.E.A. Holdings plc (RE.)
R.E.A. Holdings plc: Further re update on selling prices

30-Jun-2021 / 11:45 GMT/BST
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R.E.A. Holdings plc ("REA" or the "company")

Further re update on selling prices

Further to the company's announcement in December 2020 regarding the impact of Indonesian export duty and export levy at different reference prices on selling prices for CPO and CPKO, the Indonesian government has published a change to the structure of  export levy and duty with effect from 1 July 2021. 

Export duty is a tax payable to the Indonesian government and export levy is payable to a dedicated fund that utilises levy income to subsidise the manufacture of biodiesel from CPO and to support other measures designed to benefit the growing of oil palms in Indonesia.  Both export duty and export levy are calculated on sliding scales (as shown in the table below) by reference to a CPO reference price that is set periodically by the Indonesian government on the basis of CIF Rotterdam and other recognised benchmark CPO prices.  The CPO reference price is expected to be revised to $1,094 per tonne in July.

REA generally sells CPO in the Indonesian local market which is not subject to export duty or export levy.  However, arbitrage between the Indonesian local and international CPO markets normally results in a local price that is broadly in line with prevailing international prices after adjustment of the latter for delivery costs and export duty and levy. 

 
CPO: combined export levy and export duty applicable from 2 July 2021

CPO reference price

 

 

 

 

 

From

To

 Levy

 Duty

 Total

 

Net price*

$

$

 $

 $

 $

 

 $

-

750

55

-

55

 

695

751

800

75

3

78

 

722

801

850

95

18

113

 

737

851

900

115

33

148

 

752

901

950

135

52

187

 

763

951

1,000

155

74

229

 

771

1,001

1,050

175

93

268

 

782

1,051

1,100

175

116

291

 

809

1,101

1,150

175

144

319

 

831

1,151

1,200

175

166

341

 

859

1,201

1,250

175

183

358

 

892

1,251

1,300

175

200

375

 

925

*At top of band

 

 

 

 

 

 

CPO: combined export levy and export duty applicable from 10 December 2020 to 1 July 2021

CPO reference price

 

 

 

 

 

From

To

 Levy

 Duty

 Total

 

Net price*

$

$

$

$

$

 

$

-

670

55

-

55

 

615

670

695

60

-

60

 

635

695

720

75

-

75

 

645

720

745

90

-

90

 

655

745

750

105

-

105

 

645

751

770

105

3

108

 

662

770

795

120

3

123

 

672

795

800

135

3

138

 

662

801

820

135

18

153

 

667

820

845

150

18

168

 

677

845

850

165

18

183

 

667

851

870

165

33

198

 

672

870

895

180

33

213

 

682

895

900

195

33

228

 

672

901

920

195

52

247

 

673

920

945

210

52

262

 

683

945

950

225

52

277

 

673

951

970

225

74

299

 

671

970

995

240

74

314

 

681

995

1,000

255

74

329

 

671

1,001

1,050

255

93

348

 

702

1,051

1,100

255

116

371

 

729

1,101

1,150

255

144

399

 

751

1,151

1,200

255

166

421

 

779

1,201

1,250

255

183

438

 

812

1,251

1,300

255

200

455

 

845

*At top of band

 

 

 

 

 

 

Enquiries:

R.E.A. Holdings plc
Tel: 020 7436 7877

 

 



ISIN: GB0002349065
Category Code: FUR - .
TIDM: RE.
LEI Code: 213800YXL94R94RYG150
Sequence No.: 114635
EQS News ID: 1213824

 
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