Anglo-Eastern Plantations Regulatory News (AEP)

1 Jun 2007 07:01

Anglo-Eastern Plantations PLC01 June 2007 Friday 1 June 2007 ANGLO-EASTERN PLANTATIONS PLC AGM STATEMENT AND PROXY VOTES RECEIVED "major improvement expected in 2007 on 2006's record result" AGM Chairman's Statement At the Annual General Meeting in London this morning of Anglo-Eastern, whichoperates approximately 35,000 hectares (ha) of developed plantations, primarilyoil palm in Indonesia, Mr Peter O'Connor, senior independent non-executivedirector, who will act as chairman, will comment on current trading as follows: "As mentioned in the chairman's statement in the annual report for 2006, cropsso far this year are rather disappointing but, more importantly as far asprofits are concerned, crude palm oil (CPO) prices are very strong. Total group production of fresh fruit bunches (FFB) to 30 May is about 1.5%below the same period in 2006 and 8% below expectations. This masks improved FFBcrops from our North Sumatra estates, which are 5% ahead of last year and 6%ahead of expectations. But production from our Bengkulu and Malaysian propertiesis correspondingly disappointing. Both regions are suffering from the prolongeddrought in the second half of 2006: other, third-party, estates are equallyaffected. However, the position is more than offset by high CPO prices which have improvedsteadily from $570/mt at the end of 2006 to $800/mt today. In March, havingregard to the favourable price and to secure our cash position to support ouracquisitions policy, we sold forward about one third of the group's CPOproduction through to December 2007 at an average price of $604/mt. This alonewill secure the group profit for 2007 at the same level as 2006. The profit forthe four months to April is already well ahead of the same period in 2006.Indications are that our crops will pick up in the second half of 2007, so, ifCPO prices hold and, barring any significant adverse factors, we expect a majorimprovement in results for 2007. I should warn that the Indonesian government is concerned at the effect of thecurrent CPO price on domestic cooking oil prices. It is possible that thecurrent 3% export tax will be raised with an equivalent negative effect on ourex factory prices. Or, alternatively, the industry in Indonesia will be requiredto subsidise a portion of domestic cooking oil production. It is now our aim to plant 1,100ha at Bengkulu by the middle of next year, whichwill complete this 15,850ha project. At Labuhan Bilik we have planted 1,100hathis year bringing the total to 1,450ha. We have recently received governmentapproval for the next stage and continue to expect to complete planting this4,000ha estate by the end of 2008. Many shareholders will be aware of our announcement on 11 May 2007 of ourcommitment to purchase the Cahaya Pelita Andhika estate of 4,500ha in NorthSumatra, of which 2,800ha are planted with 11 year old, but very neglected, oilpalms. The balance area will be planted during 2008. The consideration is $6.4million. While we have satisfied ourselves on the validity of the land title andthe planted areas, there are still some investigations to complete, which wehope will be done shortly. We are continuing our search for both planted andunplanted land. Total planted area immediately following the acquisition will be37,800ha and total land area will be 49,300ha." Proxy Votes Received The results of proxy card votes received on resolutions to be put to the meetingare: Number of valid proxy cards: 105 Issued share capital: 39,958,272 Total voting rights: 39,490,272 Number of votes per share: 1 Resolution (no. Shares Shares Shares Shares Marked as noted on For Discretionary Against As Votes proxy card) Withheld /Abstentions 1 4,105,087 20,553,263 378,904 - 2 4,483,654 20,553,263 337 - 3 4,364,119 20,553,263 4,337 115,535 4 (a) 3,766,549 20,553,266 397,658 319,781 4 (b) 3,937,725 20,553,266 227,017 319,246 4 (c) 4,087,363 20,553,266 77,379 319,246 4 (d) 4,105,038 20,553,266 383 378,567 5 4,483,150 20,553,767 337 - 6 4,457,435 20,553,767 14,417 11,635 7 4,483,059 20,553,812 341 42 8 4,320,874 20,553,767 85,599 77,014 Enquiries: Anglo-Eastern Plantations PlcRollo Barnes (Financial Director) 020-7236 2838 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