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

R E A HoldingsAnnouncement

27/09/2024 07:15

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

   27-Sep-2024 / 07:00 GMT/BST

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

    

   Further re selling prices and export tariffs

    

   Further to the company's announcement on 6 September 2022 regarding
   selling prices for crude palm oil ("CPO") and crude palm kernel oil
   ("CPKO"), and to subsequent updates thereto published on the company’s
   website at  1 www.rea.co.uk/investors/cpo-export-tariffs, the Indonesian
   government has published a change to the export levy structure effective
   from 22 September 2024.

    

   Export levy, as also export duty, has, in recent years, been calculated on
   a sliding scale by reference to a CPO reference price that is set
   periodically by the Indonesian government on the basis of recognised
   benchmark CPO prices. Export levy is payable to a dedicated fund that
   utilises levy income to support measures designed to benefit the growing
   of oil palms in Indonesia.  Export duty is a tax payable to the Indonesian
   government.

    

   The change just announced by the Indonesian government retains the
   existing sliding scale of export duty with a top and bottom cap but now
   imposes a fixed 7.5 per cent export levy against the CPO reference price
   with no top or bottom cap, replacing the previous format of incremental
   levy increases. The ministerial decree is expected to be reviewed after
   six months and the new export tariff structure will remain in place
   pending any further announcement.

    

   The rates of export levy and export duty following the latest revision are
   set out below. The CPO reference price for September is $839.53, resulting
   in total export tariffs of $115 per tonne for CPO (net price of $765 per
   tonne) and export tariffs of $148 per tonne for CPKO. This represents
   decreases in the tariffs for both CPO and CPKO of approximately $27 per
   tonne as compared with the regime in force prior to the revision.

    

   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 applicable from 22 September 2024

    

   From   To   Duty Levy (7.5%) Total   Example net price*
       $     $    $           $     $                    $
       -   680    -          51    51                  629
     681   730    3          55    58                  672
     731   780   18          59    77                  704
     781   830   33          62    95                  735
     831   880   52          66   118                  762
     881   930   74          70   144                  786
     931   980  124          74   198                  783
     981 1,030  148          77   225                  805
   1,031 1,080  178          81   259                  821
   1,081 1,130  201          85   286                  844
   1,131 1,180  220          89   309                  872
   1,181 1,230  240          92   332                  898
   1,231 1,280  250          96   346                  934
   1,281 1,330  260         100   360                  970
   1,331 1,380  270         104   374                1,007
   1,381 1,430  280         107   387                1,043
   1,431 1,480  288         111   399                1,081

    

   *At top of band

    

    

   Enquiries:

    

   R.E.A. Holdings plc

   Tel: +44(0)20 7436 7877

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          GB0002349065
   Category Code: MSCM
   TIDM:          RE.
   LEI Code:      213800YXL94R94RYG150
   Sequence No.:  349414
   EQS News ID:   1996765


    
   End of Announcement EQS News Service

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