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

R E A HoldingsAnnouncement

29/03/2022 07:15

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

   29-March-2022 / 07:00 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 June 2021 regarding selling
   prices for crude palm oil ("CPO") and crude palm kernel oil ("CPKO"), the
   Indonesian government has published a change to the export levy structure
   with effect from 17 March 2022.  There has been no change to the export
   duty 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 17 March 2022 are set out below. These extend the scale previously in
   operation which was capped at $1,050 per tonne (so that there was no
   increase in levy or duty at CPO reference prices above that level).  The
   new scale is capped at $1,550 per tonne.

   The CPO reference price is expected to be $1,786 per tonne from April 2022
   which, being above $1,500 per tonne, will result in total export tariffs
   of $575 per tonne. This represents an increase of $200 per tonne from the
   total export tariffs that were payable under the previous rules. The
   impact of this increase will be mitigated by the removal of domestic
   market obligations that were designed to procure the sale, in the domestic
   market at a capped price, of cooking oil with a CPO content equivalent to
   20 per cent (subsequently increased to 30 per cent) of the volume of
   Indonesian CPO exports.

   The export levy is payable to a dedicated fund that is used to subsidise
   the manufacture of biodiesel from CPO, smallholder replanting and, more
   recently, the sale of Indonesian cooking oil.  Export duty is a duty
   levied by the Indonesian government.

   Combined export levy and export duty applicable from 17 March 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   93   268          782
       1,051     1,100  195  116   311          789
       1,101     1,150  215  144   359          791
       1,151     1,200  235  166   401          799
       1,201     1,250  255  183   438          812
       1,251     1,300  275  200   475          825
       1,301     1,350  295  200   495          855
       1,351     1,400  315  200   515          885
       1,401     1,450  335  200   535          915
       1,451     1,500  355  200   555          945
       1,501     1,550  375  200   575          975
   *At top of band                        

    

   Enquiries:

    

   R.E.A Holdings plc

   Tel: 020 7436 7877

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   ISIN:          GB0002349065
   Category Code: MSCM
   TIDM:          RE.
   LEI Code:      213800YXL94R94RYG150
   Sequence No.:  152023
   EQS News ID:   1313803


    
   End of Announcement EQS News Service

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