REG - Anglo-Eastern Plant - AGM Statement

Anglo-Eastern PlantationsAnnouncement

27/06/2022 08:00

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RNS Number : 2647Q  Anglo-Eastern Plantations PLC  27 June 2022

27 June  2022

 

 

Anglo-Eastern Plantations Plc

("AEP" or the "Company")

 

AGM Statement

 

 

The 37th Annual General Meeting of Anglo-Eastern Plantations Plc will be held
at the the offices of UHY Hacker Young LLP, Quadrant House, 6(th) Floor, 4
Thomas More Square, London E1W 1YW at 11am today.

 

At the meeting, the Chairman will comment on current operational performance
and development as well as the outlook for the remainder of  2022.

 

Operational and financial performance

 

For the first five months ended 31 May 2022, AEP's own production of fresh
fruit bunches ("FFB") was 460,800mt, an overall decrease of 3% compared to the
same period in 2021 (five months to May 2021: 477,300mt). The plantations in
North Sumetera with younger palms performed reasonably well, while plantations
with older palms in Bengkulu and Kalimantan experienced a drop in production.
The lower production in Bengkulu was due to the reduction of matured areas as
1,355 hectares were replanted from 2021 to May 2022 while the lower production
in Kalimantan was mainly due to seasonal variation as rainfalls in these areas
were close to normal. The harvesting of crops in the KAP estate in Kalimantan
was also adversely affected by the ban by the local authority on transporting
of FFB on public roads for almost a month. This ban was due to the damage
caused by transportation vehicles to the public roads in the area during bad
weather in the early part of the year.

 

FFB bought in was 466,000mt, a decrease of 2% in comparison with the same
period last year (five months to May 2021: 475,800mt). Three of AEP'smills
reduced external crop purchases in May 2022 as their CPO tanks were close to
peak storage capacities due to buyers' delay in taking deliveries. As a
result, the six mills processed a lower volume of crops with the Crude Palm
Oil ("CPO") production at 187,000mt, 4% lower than the corresponding period in
2021 (five months to May 2021: 194,400mt).

 

The CPO ex-Rotterdam price averaged $1,650/mt for the first five months to 31
May 2022, 47% higher than the average price of $1,120/mt recorded in the first
five months of 2021. The mills accordingly enjoyed a 54% higher average
ex-mill price of $1,064/mt compared to $691/mt for the same period last year.
The ex-mill price in Indonesia has, however, fallen by as much as 30% since 28
April 2022 due to the confusion and the uncertainty of the rules surrounding
the export of palm products despite the export ban being lifted on 23 May
2022.

 

Development

 

AEP has plantations across Indonesia and Malaysia, amounting to some 128,000
hectares, of which approximately 75,117 hectares (including Plasma) are
planted. The Group's planting for the first five months ended 31 May 2022 was
371 hectares (including Plasma) (five months to May 2021: 907 hectares).
During the first 5 months, the higher rainfall in Central Kalimantan disrupted
land clearance.

 

The construction work for the seventh mill in North Sumatera, after much delay
due to the pandemic and new regulations imposed on the importation of
machineries, is expected to be completed by the fourth quarter of 2022.

 

The site for the development of the second mill in Kalimantan has been
selected and drawings will be finalised for submission to the local
authorities for building permits and environmental impact assessment. Barring
any unforeseen delay, earth works are expected to start before the year end.

 

Outlook

 

The CPO price ex-Rotterdam closed at $1,660/mt on 10 June 2022, representing
an increase of 26% from the start of the year at $1,320/mt. We expect the
ex-mill price in Indonesia to improve after the government issued guidelines
and regulations on 14 June 2022 to accelerate the shipment of palm oil
following the lifting of the export ban. However, we expect a pullback in the
CPO price as crop production improves further in the second half of the year.

 

 

Note: The information communicated in this announcement is inside information
for the purposes of Article 7 of Market Abuse Regulation 596/2014 as it forms
part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

 

 

 

 

For further enquiry, contact:

 Anglo-Eastern Plantations Plc
 Dato' John Lim Ewe Chuan         +44 (0)20 7216 4621

 Panmure Gordon (UK) Limited
 Dominic Morley                  +44 (0)20 7886 2954

 

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