(Alliance News) - Anglo-Eastern Plantations PLC on Thursday reported a jump in interim profit and revenue, due to higher crude palm oil and palm kernel prices.
The company is a producer of palm oil and rubber across Indonesia and Malaysia.
In the first half of 2022, the company posted a pretax profit of USD89.5 million, up 49% versus USD60.2 million a year before.
This was on revenue of USD249.2 million, a 26% increase year-on-year from USD197.7 million.
AEP credited this to high crude palm oil and palm kernel prices.
The crude palm oil price averaged USD1,640 per metric tonne, 46% higher than USD1,122 a year prior.
AEP declared no interim dividend, in line with previous years.
Looking ahead, the company expects crude palm oil prices to weaken in the second half.
"Economists fear that inflationary pressure arising from higher commodity prices could trigger a worldwide recession in the coming months which could dampen demand for crude palm oil," the company said.
Further, the Indonesian government's decision to waive the export levy until the end of August, as well as a deal between the Ukraine and Russia to reopen the ports in the Black Sea to allow the export of commodities could push palm oil prices lower too.
"It is increasingly apparent that 2022 will be a year of two halves, with record CPO prices in the first half of 2022 and much lower prices in the second half," the company warned.
Anglo-Eastern Plantations shares were trading flat at 944.00 pence each on Thursday afternoon in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Anglo-Eastern Plantations (AEP)