Anglo-Eastern Plantations Regulatory News (AEP)

28 Jun 2005 11:30

Anglo-Eastern Plantations PLC28 June 2005 ANGLO-EASTERN PLANTATIONS PLC AGM Statement At the Annual General Meeting in London this morning of Anglo-Eastern, whichowns approximately 31,000 ha of developed plantations (mainly oil palm inIndonesia), Mr Peter O'Connor, senior independent non-executive director, whoacted as chairman, commented as follows: "In the year ended 31 December 2004, pre-tax profit increased by 26.7% to $24.8mon turnover up 35.2% to $65.6m, both figures being a record by a wide margin.This result reflected a 15% increase in production of fresh fruit bunches (FFB),a 41% increase in FFB bought in for processing, and a 5% increase in averagecrude palm oil (CPO) prices. Turning to the current year, crops to May 2005 are slightly higher than thecorresponding period last year. Production from Bengkulu in southern Sumatra issubstantially ahead of last year due to the increasing mature plantings, butTasik's production has been significantly lower. The weather in much of northernSumatra, where Tasik is located, has been unusually dry, and on Tasik we may beseeing some reaction to the high crops of the last two years. Competition for bought in crop, for processing at the group's oil mills, hasbecome fierce with the opening of new stand-alone mills in Bengkulu and aroundTasik. Nevertheless, our bought in crop is ahead of last year, assisted bysupply to the new Blankahan mill in North Sumatra. The CPO price averaged $418/mt in the five months to May 2005, which compares to$460/mt for 2004 as a whole and $502/mt for the first six months of 2004. Thecurrent price of approximately $428/mt is still satisfactory but inevitably halfyear profits will be affected. New planting in Bengkulu is now proceeding normally after completion ofnegotiations with squatters in our land title area. In addition, we havereceived formal rights over a further 900ha of land at Bina Pitri (the 4,300 haestate, in the Sumatran province of Riau, acquired in 2004); this area has beenprepared ready for planting in October 2005. The new 20mt/hour mill at Blankahan is operating satisfactorily. Extension ofthe mill at Tasik, from 45mt/hr to 60mt/hr, is in progress and expected to becomplete in October. In summary, the development of the group is proceeding as planned. With averageCPO prices 17% down on the average for the first half of 2004, our pre-taxprofit for the first half of 2005 is likely to be well below the first half of2004. If, however, current prices of around $428/mt continue, then, with thenormal bias of production towards the second half and the lower prices whichprevailed in the second half of 2004 (an average of $433/mt), the full yearshortfall relative to 2004's record profit is expected to be significantlyreduced. Enquiries: Anglo-Eastern Plantations Plc 020-7236 2838Rollo Barnes (Financial Director) Bankside Consultants LimitedCharles Ponsonby 020-7367 8851 / 07789-202 312 This information is provided by RNS The company news service from the London Stock Exchange