REG - Anglo-Eastern Plant - AGM Statement

Anglo-Eastern PlantationsAnnouncement

24/06/2024 07:00

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RNS Number : 3869T  Anglo-Eastern Plantations PLC  24 June 2024

24 June 2024

 

 

Anglo-Eastern Plantations Plc

("AEP" or the "Company")

 

AGM Statement

 

 

The 39th Annual General Meeting of Anglo-Eastern Plantations Plc will be held
at the offices of UHY Hacker Young LLP, 6(th) floor Quadrant House, 4 Thomas
More Square, London E1W 1YW at 11 am today.

 

At the meeting, the Chairman will comment on current operational performance
and development as well as the outlook for the remainder of 2024.

 

Operational and financial performance

 

For the first five months ended 31 May 2024, our own production of fresh fruit
bunches ("FFB") was 403,200mt, a decrease of 4% compared to the same period in
2023 (five months to May 2023: 420,300mt). Production in Kalimantan in the
second quarter of 2024 was slightly lower compared to first quarter due to
higher rainfall of more than 300 mm per month for two consecutive months which
affected harvesting. Crop production was nevertheless up 2% against last year
as most trees reached peak maturity and a 6% increase in matured areas.
Plantations in North Sumatera, Riau and Bengkulu, experienced a drop in
production ranging from between 2% to 18%. Lower production numbers in North
Sumatera and Bengkulu were particularly due to replanting activities. The
matured areas in North Sumatera and Bengkulu at the end of May 2024 compared
to the same period last year were further reduced by 300 hectares and 490
hectares respectively as more trees were felled for replanting. Five months of
exceptional high rainfall in Bengkulu, averaging more than 400 mm per month
also interfered with harvesting activities.

 

FFB bought-in was 367,700mt, a decrease of 9% in comparison with the same
period last year (five months to May 2023: 404,000mt). As mentioned above,
excessive rain inadvertently damaged roads which affected the delivery of
external crops to our mills in Tasik and Bengkulu which led to a decrease in
external crops by 21% and 9% respectively compared to the same period last
year. The Kalimantan mill also bought 52% less external crops for the first
five months of 2024 as it lost a major supplier which started processing its
own crop. Crude Palm Oil ("CPO") production for the first five months of 2024
was 154,400mt, 9% lower than the corresponding period in 2023 (five months to
May 2023: 169,200mt) due to lesser bought-in crops as well a drop in our own
crop production.

 

The CPO ex-Rotterdam price averaged $1,014/mt for the first five months to 31
May 2024, 1% higher than the average price for the corresponding period in
2023 (first five months to May 2023: $1,006/mt). The average ex-mill price for
the same period however was lower at $750/mt, a 2% decline compared to the
corresponding period in 2023 (first five months to May 2023: $768/mt).

 

Development

 

AEP has plantations across Indonesia and Malaysia, amounting to approximately
90,500 hectares, of which approximately 68,615 hectares including plasma are
planted. The Group's new planting and replanting including Plasma for the
first five months ended 31 May 2024 was 426 hectares (five months to May 2023:
916 hectares). New replanting and replanting activities slowed down as usage
of heavy machineries was curtailed due to the higher rainfall.

 

As reported previously, the HPP mill has commenced operation in the first
quarter of 2024 but has only processed its own crop. It will start purchasing
external crops once the effluent treatment plant is fully commissioned, which
is expected to be in the third quarter of 2024, to increase the utilisation of
the mill.

 

The earthworks design for the eight mill in the KAP estate in Kalimantan has
been completed. The building permit is pending the evaluation of the
Enviromental department of which we have been assured is at the final stage of
approval. We are hopeful to start the earthworks by the third quarter of
2024.

 

Outlook

 

The CPO price ex-Rotterdam closed at $1,018/mt on 5 June 2024, representing an
increase of 9% from the start of the year at $935/mt. The demand for CPO is
expected to remain weak and may decline in the near term, especially against
the backdrop of a seasonal increase in soybean production in South America. We
further expect weaker CPO prices going forward as harvest generally peak in
the second half of the year barring a drastic change in weather forecast.

 

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 / Amrit Mahbubani
                                                      +44
(0)20 7886 2500

 

 

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