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Maple Energy (MPLE)

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Wednesday 12 June, 2013

Maple Energy

Company Update

RNS Number : 8457G
Maple Energy plc
12 June 2013




12 June 2013





("Maple" or the "Company")






Maple Energy plc (AIM: MPLE; LIMA: MPLE), an integrated energy company with assets in Peru, announces today various updates regarding its ethanol business and operations as at 31 May 2013.



·      An aggregate amount of approximately 461,000 gross tonnes of sugar cane (approximately 412,000 net tonnes) have been harvested and processed during 2013. This net amount of processed sugar cane excludes sugar cane "trash", which primarily consists of green and dry leaves of the sugar cane that are ultimately used as fuel to generate electricity.


·      An aggregate amount of approximately 31,000 cubic metres (approximately 8.24 million gallons) of fuel-grade ethanol have been produced at the Ethanol Plant during 2013. The average ethanol yield during the five-month period ended 31 May 2013 was approximately 20.0 gallons (approximately 75.8 litres) per net tonne of sugar cane processed. Maple currently expects to produce in the range of approximately 20 to 23 gallons of fuel-grade ethanol on average from each net tonne of sugar cane processed at the Ethanol Plant in 2013. Ethanol yields are typically at the low end of this range during the warmer months in the first part of the year, and yields are expected to be in the higher end of this range during the second half of the year and, particularly in 2013, as the average age of the harvested sugar cane approaches 10 to 12 months later in the year.


·      An aggregate amount of approximately 48,300 megawatt-hours ("MWh") have been generated at the Ethanol Plant during 2013, and the energy required for the agricultural and industrial operations has been approximately 45,300 MWh during this period.


·      Under the Company's existing sales and distribution agreement, Maple has sold an aggregate volume of approximately 29,800 cubic metres (approximately 7.88 million gallons) of fuel-grade ethanol to Mitsui during 2013 for delivery to customers in the European Union. This accounted for approximately 95% of Maple's ethanol sales by volume during this period, and Maple expects to continue exporting a substantial portion of its ethanol production for delivery to customers in the European Union.  In addition to the Mitsui sales, Maple sold a total of approximately 1,480 cubic metres (approximately 0.39 million gallons) of ethanol to domestic and regional markets during the same period.


·      In its 26 November 2012 announcement, Maple estimated that its total production costs per gallon of ethanol produced and available at the Ethanol Plant ("Total Production Costs") for 2013 using its own sugar cane as feedstock should be in the range of approximately US$1.32 to US$1.43 per gallon.  This Total Production Costs estimate included direct production costs comprised of agricultural, industrial, and other direct costs as well as administrative costs.  Based on current estimates of costs and ethanol production volumes for 2013, the Company now expects Total Production Costs for 2013 to be in the range of US$1.60 to US$1.70 per gallon. The increase in the production cost estimate on a per gallon basis is primarily a result of: 1) the fact that a significant portion of the production costs are relatively fixed in nature; and 2) the expected gross tonnes of harvested sugar cane for 2013, which have a direct impact on ethanol production volumes, have fallen from the November 2012 estimate to a current estimate of approximately 1.075 million gross tonnes (approximately 0.968 million net tonnes). Part of this reduction in the estimate of harvested tonnes is due to the fact that only a portion of the sugar cane planted in the first quarter of 2013 is now planned to be harvested in 2013, and the remaining portion planted in such quarter will be harvested in early 2014. Principally as a result of the expected increase in Total Production Costs for 2013, which are calculated on a cost per gallon basis, the projected financial results for 2013 are below the prior expectations of the Company.


·      Maple expects a reduction of Total Production Costs in 2014 to a range of approximately US$1.55 to US$1.65 per gallon as a result of achieving additional operational efficiencies and an approximate 4% increase in gross tonnes of harvested sugar cane for 2014 as compared to 2013. The Company aims to ultimately achieve a longer term estimate for such costs of US$1.30 to US$1.40 per gallon in later years, subject to a successful expansion of the plantation to approximately 10,000 hectares. This expansion requires obtaining certain additional governmental approvals as well as additional capital expenditures for land clearing and preparation works, the installation of additional main water delivery and drip irrigation systems, the planting of additional sugar cane, and the purchase of more rolling stock.


·      For export sales destined for markets in the European Union and delivered to Rotterdam, the additional costs for storage, loading, marketing, and transportation including shipping costs from the Ethanol Plant to Rotterdam (collectively, "Transportation and Marketing Costs") continue to be estimated in the range of US$0.40 to US$0.50 per gallon of ethanol.


·      During the first quarter of 2013, the Company planted 880 hectares of sugar cane reaching a plantation size of 7,412 hectares.  An additional 28 hectares were planted in April 2013 to achieve the current plantation size of 7,440 hectares. Subject to obtaining certain additional governmental approvals, Maple plans to continue expanding its plantation by an additional 352 hectares in the second half of this year to achieve a total planned plantation size of approximately 7,792 hectares by the end of the year.  




Rex Canon, CEO of Maple Energy, commented today:


"We plan to harvest and deliver approximately 1.075 million gross tonnes of sugar cane from our plantation to the Ethanol Plant during 2013 and will continue to focus attention on increasing the efficiency of our operations."



For further information, please contact:


Maple Energy plc (+ 51 1 611 4000)

Rex W. Canon, Chief Executive Officer, President, and Executive Director


Cenkos Securities plc

Jon Fitzpatrick   +44 20 7397 8900

Ken Fleming +44 131 220 6939


Mirabaud Securities Ltd. (+44 20 7321 2508)

Peter Krens

Rory Scott


Buchanan (+44 20 7466 5000)

Mark Edwards

Ben Romney


Forward-Looking Statements


Statements contained in this document, particularly those regarding  possible, projected, or assumed future performance and results, including growth outlook, forecasted economics, operations, production, contracting, costs, prices, earnings, returns, and potential growth, are or may include forward-looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. These risks and uncertainties include, among other things, market conditions, weather risks, economic and political risks, and other factors discussed in Maple's Admission Document available on the Company's website ( Forward-looking statements are not guarantees of future performance or an assurance that Maple's current assumptions and projections are valid. Actual results, actions, and developments may differ materially from those expressed or implied by those forward-looking statements depending on a variety of factors. Furthermore, any forward-looking statements presented are expressed in good faith and are believed to have a reasonable basis as of the date of this release. These forward-looking statements speak only as at the date of this release, and Maple does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.



About Maple Energy


Maple is an integrated independent energy company, listed in London and Lima, with subsidiary assets and operations in Peru engaging in numerous aspects of the energy industry, including:


-      The development and operation of an ethanol business;

-      Exploration and production of crude oil and natural gas; and

-      Refining, marketing, and distribution of hydrocarbon products.


Maple was admitted to AIM on 13 July 2007 and trades under the symbol "MPLE". The Company was also admitted to the Lima Stock Exchange on 21 December 2007 where it trades under the same symbol.




Maple's operations are conducted and revenues are generated through its majority-owned subsidiaries. Principal operations consist of the following:


-      Ethanol Business. Operator and owner of an ethanol business located in the Piura Region on the north coast of Peru;


-      Oil Production. Operator and holder of 100% working interests in its crude-oil producing properties, Blocks 31-B, 31-D, and 31-E;


-      Refining, Marketing, and Distribution Operations. Operator of the Pucallpa Refinery and Sales Plant, which has capacity to refine up to (i) 3,400 barrels per day of crude oil producing Residual 5 fuel oil, (ii) 3,000 barrels per day of crude oil producing Residual 6 fuel oil, or (iii) 4,100 barrels per day of natural gasolines. This plant also includes sales and distribution operations in the central Peruvian jungle, central Peruvian highlands, and Lima regions; and


-      Oil and Gas Exploration. Exploration opportunities through a:

            100% working interest in Block 31-E; and

            33.77% working interest in the Aguaytía Deep Prospect in Block 31-C.


This information is provided by RNS
The company news service from the London Stock Exchange

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