REG - M. P. Evans Group - Indonesian Export Levy Update

M P EvansAnnouncement

27/09/2024 13:45

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RNS Number : 0719G  M. P. Evans Group PLC  27 September 2024

M.P. EVANS GROUP PLC

("Company", "Group" or "M.P. Evans")

 

INDONESIAN GOVERNMENT ANNOUNCES REDUCTION IN EXPORT LEVY

 

M.P. Evans Group PLC, a producer of sustainable Indonesian palm oil, notes the
recent announcement by the Indonesian government regarding changes to its
export levy for crude palm oil ("CPO"), which are effective immediately.
Previously, the levy was charged at graduated amounts, increasing in US$50 per
tonne bands. This approach is being replaced with a lower 7.5% export levy. As
before, the levy is set monthly based on a reference price connected to the
global CPO commodity price. There is no change to the separate export tax
which continues to be charged in increasing amounts at each US$50 per tonne
price band.

 

The combined effect of the export tax and levy prior to the change is shown in
table 1 in the Annex, with table 2 showing the position after the amendment,
including the levy as a result of the new approach. At all prices shown in the
table, the amendment leads to a reduction in the export levy charged by the
Indonesian government.

 

As reported in the Company's 2024 interim report, published on 16 September
2024, the Group continues to receive higher mill-gate prices than the US$771
per tonne average in the first half of the year, with current pricing well in
excess of US$800 per tonne.

 

Whilst not expecting a material impact from the changes to the export levy,
management will continue to monitor the pricing environment in the coming
months as the new arrangements are introduced.

 

Enquiries:

 

 M.P. Evans Group PLC                              Telephone: +44 (0) 1892 516333
 Peter Hadsley-Chaplin, chairman
 Matthew Coulson, chief executive
 Luke Shaw, chief financial officer

 Cavendish Capital Markets (Nomad and broker)      Telephone: +44 (0) 20 7220 0500
 Matt Goode, George Lawson (Corporate finance)
 Tim Redfern, Harriet Ward (ECM)

 Hudson Sandler (Financial PR)                     Telephone: +44 (0) 20 7796 4133
 Charlie Jack, Francis Kerrigan, Francesca Rosser

 

 

 

ANNEX

Table 1 - combined export tax and levy prior to change (US$ per tonne)

 Reference price                            Net price at top of
 From      To          Levy   Tax   Total   band
 0         680        55           55       625
 681       730        65      3    68       662
 731       780        75      18   93       687
 781       830        85      33   118      712
 831       880        90      52   142      738
 881       930        95      74   169      761
 931       980        100     124  224      756
 981       1,030      105     148  253      777
 1,031     1,080      110     178  288      792
 1,081     1,130      115     201  316      814
 1,131     1,180      120     220  340      840
 1,181     1,230      140     240  380      850
 1,231     1,280      160     250  410      870
 1,281     1,330      180     260  440      890
 1,331     1,380      200     270  470      910
 1,381     1,430      220     280  500      930
 1,431     and above  240     288  528

 

Table 2 - new combined export tax and levy (US$ per tonne)

 Reference price                            Net price at top of  Saving to prior
 From      To          Levy   Tax   Total   band                 structure
 0         680        51           51       629                  4
 681       730        55      3    58       672                  10
 731       780        59      18   77       703                  16
 781       830        62      33   95       735                  23
 831       880        66      52   118      762                  24
 881       930        70      74   144      786                  25
 931       980        74      124  198      782                  26
 981       1,030      77      148  225      805                  28
 1,031     1,080      81      178  259      821                  29
 1,081     1,130      85      201  286      844                  30
 1,131     1,180      89      220  309      871                  31
 1,181     1,230      92      240  332      898                  48
 1,231     1,280      96      250  346      934                  64
 1,281     1,330      100     260  360      970                  80
 1,331     1,380      104     270  374      1,006                96
 1,381     1,430      107     280  387      1,043                113
 1,431     and above          288

 

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