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R.E.A. Holdings pre-tax profits down 38%

By BFN News | 01:43 PM | Friday 24 August, 2012

Interim pre-tax profits at R.E.A. Holdings fell by 38% to $22.8m in the six months to the end of June. Sales revenues dropped by 8% to $69.1m while earnings before interest, tax, depreciation, amortisation and biological gain were down 35% at $25.8m. The REA group is principally engaged in the cultivation of oil palms in the province of East Kalimantan in Indonesia and in the production of crude palm oil and by-products. But the group has also acquired rights in respect of three coal concessions in East Kalimantan and is developing an open cast coal mining operation and coal trading activity based on these concessions. It said the crop of fresh fruit bunches totalled 272,000 tonnes - 9.3% down on last time - but the crude palm oil extraction rate of 23.3% was up from 22.7% while the palm kernel extraction rate of 4.7% compared with 4.4% previously. It said coal prices were down significantly in the face of reduced Asian demand and coal trading activities had been suspended, pending satisfactory resolution of a dispute arising after a buyer for the group's first significant shipment in 2011 repudiated its contractual obligations. At 1:43pm: (LON:RE.) R.E.A. Holdings share price was +4.75p at 554.75p Story provided by

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