Anglo-Eastern Plantations PLC - palm oil and rubber producer in Indonesia and Malaysia - Reports rise in annual earnings and raised annual payout. Anglo-Eastern Plantations posts 2020 revenue USD269.1 million, up 23% from USD219.1 million in 2019, due primarily to the higher crude palm oil prices and higher production. Pretax profit after biological asset movement USD51.7 million, almost triple from USD18.9 million in 2019. Anglo-Eastern Plantations declared a final 2020 dividend of 1.0 US cent, double from 0.5 of a US cent in 2019.
Company says: "As the group is still facing a period of uncertainty due to the coronavirus pandemic, the directors carried out stress tests as required, to ensure that the group has adequate resources in a worst-case scenario to remain as a going concern for at least twelve months from the date of this report. The directors have a reasonable expectation, having made the appropriate enquiries, that the group has control of the monthly cash flows and that the group has sufficient cash resources to cover the fixed cash flows for a period of at least twelve months from the date of approval of these financial statements.
"For these reasons, the directors adopted a going concern basis in preparation of the financial statements. The directors have made this assessment after consideration of the group's budgeted cash flows and related assumptions including appropriate stress testing of identified uncertainties, specifically on the potential shut down of the entire operations from three to twelve months if all the plantations are infected with coronavirus as well as the impact on the demand for palm oil with decreases of 50% to 100%."
Current stock price: 671 pence
Year-to-date change: up 15%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Anglo-Eastern Plantations (AEP)