REG-R.E.A. Holdings plc R.E.A. Holdings plc: Correction - Further re selling prices

R E A HoldingsAnnouncement

20/06/2022 12:00

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   R.E.A. Holdings plc (RE.)
   R.E.A. Holdings plc: Correction - Further re selling prices

   20-Jun-2022 / 11:59 GMT/BST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   R.E.A. Holdings plc ("REA" or the "company")

   Further re selling prices

   Further to the company's announcement in March 2022 regarding selling
   prices for crude palm oil ("CPO") and crude palm kernel oil ("CPKO"), the
   Indonesian government has published a change to the export duty structure
   with effect from 10 June 2022. There has been no change to the export levy
   structure.

   REA sells CPO into the local Indonesian market which is not subject to
   export levy or export duty. However, arbitrage between the Indonesian and
   international CPO markets normally results in a local price that is
   broadly in line with prevailing international prices after adjustment of
   the latter for delivery costs and export tariffs and restrictions. Changes
   to export tariffs and restrictions therefore have an indirect effect on
   the prices that REA achieves on sales of its CPO

   Export tariffs comprise export duty and export levy. Both are calculated
   on a sliding scale by reference to a CPO reference price that is set
   periodically by the Indonesian government on the basis of CIF Rotterdam
   and other recognised benchmark CPO prices. The export tariffs applicable
   from 10 June 2022 are set out below. The incremental export duty for CPO
   and CPKO have not changed up to a reference price of less than $1,000 per
   tonne but have increased from a reference price of more than $1,000 per
   tonne from the previous rules.

   The CPO reference price is $1,700 per tonne for June and is expected to be
   $1,646 per tonne from July 2022 which, being above $1,500 per tonne, will
   result in total export tariffs of $663 per tonne. This represents an
   increase of $88 per tonne from the total export tariffs that were payable
   under the previous rules.

   The domestic market obligation (“DMO”) was re-introduced in June at a
   factor of 1:5 local to export. In order to obtain an export permit
   exporters are required to prove, through online government systems, that
   their DMO has been complied with. These processes have been slower than
   anticipated which has led to high domestic stocks of palm oil and its
   derivatives. The government has subsequently introduced an export
   mechanism for the acceleration of distribution to optimise and stabilise
   the production of palm oil that involves paying an additonal duty of $200
   per tonne which waives the DMO rules for exporters. This waiver program is
   valid until the 31 July 2022.

   Combined export levy and export duty (before DMO waiver duty) applicable
   from 10 June 2022

   CPO reference price                    
        From        To Levy Duty Total   Net price*
           $         $    $    $     $            $
           -       750   55    -    55          695
         751       800   75    3    78          722
         801       850   95   18   113          737
         851       900  115   33   148          752
         901       950  135   52   187          763
         951     1,000  155   74   229          771
       1,001     1,050  175  124   299          751
       1,051     1,100  195  148   343          757
       1,101     1,150  215  178   393          757
       1,151     1,200  235  201   436          764
       1,201     1,250  255  220   475          775
       1,251     1,300  275  240   515          785
       1,301     1,350  295  250   545          805
       1,351     1,400  315  260   575          825
       1,401     1,450  335  270   605          845
       1,451     1,500  355  280   635          865
       1,501     1,550  375  288   663          887
   *At top of band                        

    

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   ISIN:          GB0002349065
   Category Code: MSCM
   TIDM:          RE.
   LEI Code:      213800YXL94R94RYG150
   Sequence No.:  169467
   EQS News ID:   1379401


    
   End of Announcement EQS News Service

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