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(Alliance News) - MP Evans Group PLC on Monday reported a double-digit decline in revenue in the first half of 2019 as a reduction in price offset increased crude palm oil production.
The producer of Indonesian palm oil said it slumped to loss in the six months to the end of June of USD518,000 from the USD5.8 million profit reported a year earlier, as revenue dropped by 14% to USD46.3 million from USD53.8 million.
"The results for the first half of 2019 reflected a period of low crude palm-oil prices, which outweighed an increase in the group's crops and improvement in its extraction rate," said Chair Peter Hadsley-Chaplin.
The company explained that its revenue was hurt by a decline in average price of crude palm oil, which fell by 20% to USD528 per tonne year-on-year. MP Evans' production, however, expanded by 3% to 95,000 tonnes of crude palm oil and 21,800 tonnes of palm kernels.
MP Evans maintained its interim dividend at 5.00 pence a share.
"Since the period end, the price of crude palm oil has risen, and the group was able effectively to acquire a further 2,200 planted hectares by purchasing additional shareholdings in its own operating subsidiaries from one of its minority partners," said Hadsley-Chaplin.
During the first half of July, crude palm oil prices traded between USD480 and USD500 per tonne, the company said. Since the middle of July, the price has steadily strengthened, reaching a level of USD570 in the first week of September. However, MP Evans said the increase in production of palm oil is expected to slow down compared with 2018.
MP Evans shares were trading 4.6% lower on Monday in London at 642.00p each.
