Anglo-Eastern Plantations Regulatory News (AEP)

24 June 2024

Anglo-Eastern Plantations Plc

("AEP" or the "Company")

AGM Statement

The 39th Annual General Meeting of Anglo-Eastern Plantations Plc will be held at the offices of UHY Hacker Young LLP, 6th floor Quadrant House, 4 Thomas More Square, London E1W 1YW at 11 am today.

At the meeting, the Chairman will comment on current operational performance and development as well as the outlook for the remainder of 2024.

Operational and financial performance

For the first five months ended 31 May 2024, our own production of fresh fruit bunches ("FFB") was 403,200mt, a decrease of 4% compared to the same period in 2023 (five months to May 2023: 420,300mt). Production in Kalimantan in the second quarter of 2024 was slightly lower compared to first quarter due to higher rainfall of more than 300 mm per month for two consecutive months which affected harvesting. Crop production was nevertheless up 2% against last year as most trees reached peak maturity and a 6% increase in matured areas. Plantations in North Sumatera, Riau and Bengkulu, experienced a drop in production ranging from between 2% to 18%. Lower production numbers in North Sumatera and Bengkulu were particularly due to replanting activities. The matured areas in North Sumatera and Bengkulu at the end of May 2024 compared to the same period last year were further reduced by 300 hectares and 490 hectares respectively as more trees were felled for replanting. Five months of exceptional high rainfall in Bengkulu, averaging more than 400 mm per month also interfered with harvesting activities.

FFB bought-in was 367,700mt, a decrease of 9% in comparison with the same period last year (five months to May 2023: 404,000mt). As mentioned above, excessive rain inadvertently damaged roads which affected the delivery of external crops to our mills in Tasik and Bengkulu which led to a decrease in external crops by 21% and 9% respectively compared to the same period last year. The Kalimantan mill also bought 52% less external crops for the first five months of 2024 as it lost a major supplier which started processing its own crop. Crude Palm Oil ("CPO") production for the first five months of 2024 was 154,400mt, 9% lower than the corresponding period in 2023 (five months to May 2023: 169,200mt) due to lesser bought-in crops as well a drop in our own crop production.

The CPO ex-Rotterdam price averaged $1,014/mt for the first five months to 31 May 2024, 1% higher than the average price for the corresponding period in 2023 (first five months to May 2023: $1,006/mt). The average ex-mill price for the same period however was lower at $750/mt, a 2% decline compared to the corresponding period in 2023 (first five months to May 2023: $768/mt).

Development

AEP has plantations across Indonesia and Malaysia, amounting to approximately 90,500 hectares, of which approximately 68,615 hectares including plasma are planted. The Group's new planting and replanting including Plasma for the first five months ended 31 May 2024 was 426 hectares (five months to May 2023: 916 hectares). New replanting and replanting activities slowed down as usage of heavy machineries was curtailed due to the higher rainfall.

As reported previously, the HPP mill has commenced operation in the first quarter of 2024 but has only processed its own crop. It will start purchasing external crops once the effluent treatment plant is fully commissioned, which is expected to be in the third quarter of 2024, to increase the utilisation of the mill.

The earthworks design for the eight mill in the KAP estate in Kalimantan has been completed. The building permit is pending the evaluation of the Enviromental department of which we have been assured is at the final stage of approval. We are hopeful to start the earthworks by the third quarter of 2024. 

Outlook

The CPO price ex-Rotterdam closed at $1,018/mt on 5 June 2024, representing an increase of 9% from the start of the year at $935/mt. The demand for CPO is expected to remain weak and may decline in the near term, especially against the backdrop of a seasonal increase in soybean production in South America. We further expect weaker CPO prices going forward as harvest generally peak in the second half of the year barring a drastic change in weather forecast.

Note: The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

For further enquiry, contact:

Anglo-Eastern Plantations Plc

Dato' John Lim Ewe Chuan +44 (0)20 7216 4621

Panmure Gordon (UK) Limited

Dominic Morley / Amrit Mahbubani +44 (0)20 7886 2500