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Strong cash flows at R.E.A. Holdings

By BFN News | 12:28 PM | Tuesday 12 June, 2012

R.E.A. Holdings is confident that the group will grow and continue to enjoy excellent cash flows. Although the coal operations have to-date been a little disappointing, they are not significant in the overall context. The agricultural cash flows should permit the group to maintain its planned extension planting programme and if the planned Jakarta listing of REA Kaltim is successfully concluded, it is intended to accelerate this programme. Expansion of capacity and the upgrading of the group's two existing oil mills is near completion and these are coping well with the demands of the current crop levels. Construction of the group's third oil mill, which began during last year, remains on target for completion in the second half of 2012 in readiness for the expected peak cropping months later in the year. The first of the group's two methane conversion plants, which are intended to reduce the group's greenhouse gas emissions and increase its energy efficiency, was commissioned in the first quarter of the year and is producing some 2 megawatts of power. This is being used to supply electricity to estate buildings, one oil mill and the kernel crushing plant. The second methane conversion plant is expected to be commissioned shortly. At 12:28pm: (LON:RE.) R.E.A. Holdings share price was -9p at 453.5p Story provided by

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