New Britain Palm Oil Profit, Revenue Buoyed By Higher Selling Prices

LONDON (Alliance News) - New Britain Palm Oil Ltd, which is being acquired by Malaysia's Sime Darby Plantation Sdn Bhd, Friday reported a higher profit for 2014, buoyed by a near 11% increase in revenue on the back of higher crude palm oil and palm kernel oil selling prices and oil shipments.

The palm oil producer reported a pretax profit of USD105.1 million for 2014, up from USD71.0 million in 2013, as revenue rose 10.6% to USD617.9 million from USD558.7 million, boosted by an increase in total oils shipped to customers and higher prices.

The company's gross margin improved to 40.9% from 34.4% in 2013, which it said was helped by higher selling prices and the continued depreciation of the Papua New Guinea kina against the dollar.

New Britain Palm Oil said during 2014 a total of 2.3 million tonnes of fresh fruit bunches were processed, up from 2.1 million last year.

Average selling price achieved for crude palm oil during the year was 2.4% higher than in 2013 at USD889 a tonne, and 32% higher for palm kernel oil, achieving an average selling price of USD1,276 per tonne.

The company said it had made forward sales of crude palm oil of approximately 129,000 tonnes at an average price of USD722 a tonne, as at February 25.

Last month, the European Commission cleared the acquisition of New Britain Palm Oil Ltd by Sime Darby Plantation, saying the deal did not give it concerns about competition.

Sime Darby is acquiring New Britain Palm Oil for 715 pence per share in a deal valuing the target at GBP1.07 billion.

New Britain Palm Oil shares were trading 1.3% lower Friday morning at 708.00 pence.

By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty

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