New Britain Palm Oil Limited (LSE: NBPO), one of the largest fully integrated industrial producers of sustainable palm oil, announces its first quarter report and trading update for the period from 1 January 2011 to 31March 2011.
As a result of the Bursa Malaysia quarterly reporting requirements of NBPOL's major shareholder, Kulim MalaysiaBerhad, NBPOL is required to provide the following information in respect of the three months ended 31 March 2011:
3 months ended
31 March 2011
3 months ended
31 March 2010
Sales (USD (m))
PBT (excluding IAS 41) (USD (m))
FFB Produced - own plantations (Mt)
FFB Processed (Mt)
CPO Produced (Mt)
PKO Produced (Mt)
Average CPO price per Mt achieved (USD)
(Note: USD-PNG Kina exchange rates for the three months to 31 March 2011 and 31 March 2010 were 0.3877 and 0.3665 respectively)
Nick Thompson, Chief Executive, stated:
"In the first quarter of 2011 the Company processed a record 651,946 tonnes of fresh fruit bunches (FFB), 65.6% ahead of the same period last year, including 210,002 tonnes from Kula Palm Oil Limited (KPOL), or 12.3% ahead excluding the KPOL contribution, with New Britain, Ramu and Milne Bay being particularly robust. The cropping outlook for the next quarter appears to be equally strong as production in New Britain, Higaturu, Milne Bay and the Solomon Islands will be at its peak over the next two months.
The weather in West New Britain has been a complete contrast to the same period last year when we reported wetter than normal conditions that affected our operations. Rainfall in first quarter of 2011 was the lowest on record and continues to be lower than the average but still ample for excellent growing conditions, with good sunshine hours and no negative weather impacts on operations. The Company's crude palm oil extraction rates for the first quarter of 2011 was 23.32%, a significant improvement on the corresponding period in 2010 of 21.86% and the full year 2010 of 22.42%.
Palm oil prices have been robust during the quarter, trading in a range between US$1,100 and US$1,300 per tonne and global supply and demand fundamentals for vegetable oils remain relatively tight. The Group shipped 148,000 tonnes of crude palm oil in the first quarter at an average of US$1,132 per tonnenet of hedges. As at the end of March 2011, the Company has approximately 146,000 tonnes of crude palm oil sold or priced forward for 2011 at an average price of approximately US$1,048 pertonne, and approximately 39,000 tonnes into 2012 at an average price of $1,006 per tonne.
These results demonstrate a higher PBT for a single quarter than was recorded for the entire year in 2009. Although it is important to note that there were one-off contributions in these excellent quarter results: a net profit on disposal of the Company's 50% interest in PT Dami Mas Sejahtera of USD 8.9 million; and foreign exchange gains of USD 4.8 million, these results show the excellent progress made by the Company and underpin the highly competitive price paid for the KPOL assets in 2010.
Our refinery in Liverpool continues to witness month on month increases in capacity with record sales volumes recorded in March. The foundation works are now completed and the steel work is being erected for our recently announced bakery fats plant in Liverpool, with the project on track for commissioning in 2012.
NBPOL continues to trade in line with the board's expectations and the board remains confident of reporting further progress in the year ahead."
NBPOL is a large scale integrated industrial producer of sustainable palm oil in Australasia, headquartered in Papua New Guinea (PNG). It now has over 75,000 hectares of planted oil palm plantations, a further 5,000 hectares under preparation for oil palm, over 8,000 hectares of sugar cane and a further 9,500 hectares of grazing pasture, (some of which will be converted to oil palm); eleven oil mills; two refineries, one in PNG, and one in Liverpool, UK; and a seed production and plant breeding facility. The Company is quoted on both the Main Market of the London Stock Exchange and on the Port Moresby Stock Exchange in PNG.
NBPOL is fully vertically integrated, producing its own seed (which it also sells globally) and planting, cultivating and harvesting its own land and processing and refining palm oil (both in PNG and the UK). It also contracts directly with its end customers in the EU and arranges shipping of its products.
NBPOL has high regard for the importance of its sustainability credentials and is active in proving its performance through its certification to ISO 14001 and its close involvement and support of the Roundtable on Sustainable Palm Oil ("RSPO"). The Company is a certified supplier of sustainable palm oil from the entire production base in West New Britain Province, at Ramu in PNG, and its entire Solomon Islands estates, under the RSPO guidelines.
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