Anglo-Eastern Plantations Regulatory News (AEP)

19 Jun 2009 07:00



19 June 2009

Anglo-Eastern Plantations PLC 

("AEP" or "Group")

AGM Statement and Proxy Votes Received

The twenty-fourth Annual General Meeting of Anglo-Eastern Plantations PLC, which owns approximately 132,000 hectares of plantation land, primarily in Indonesia, and operates approximately 40,000 hectares of developed plantations, will be held at the offices of Withers LLP, 16 Old Bailey, London EC4M 7EG at 11.00 a.m. today. At the meeting, the chairman will comment on current operational performance and development as well as the outlook for the remainder of 2009 as follows:-

Operational performance

"Our production of oil palm fresh fruit bunches ("FFB") in the 5 months ended 31 May 2009  amounted to 225,000 tonnes (2008: 214,000 tonnes), an increase of 5% over the same period last year. The increase was in line with the management expectation. Volume of bought-in FFB for the first 5 months of 2009 also increased by 11% over the same period in 2008.

Both the higher FFB volume produced by our estates and higher bought-in FBB volume, contributed to better utilisation rate of AEP's mills, resulting in a 6% increase in crude palm oil ("CPO") production. CPO output of 82,000 tonnes was recorded during the first five months compared to the 77,000 tonnes produced for the same period in 2008.

The average market price of CPO continued to rise, reaching a high of $820/mt in May 2009, and averaging $643/mt over the first five months of 2009. On 1 January 2009, CPO was trading at $495/mt and as of 29 May 2009, it was trading at $755/mt.  The rise in the CPO price since January 2009 can be attributed to recovery in fundamental demand for vegetable oils in general and the tighter global inventory level of competing oil seeds production.

AEP's balance sheet and overall cash flow generation remains strong in light of the continuously improving average CPO price and stronger production volume.

Development 

For the first five months of 2009, 1,500 ha have already been planted with oil palm seedlings. The Group targets to commence planting or clear for planting, a total 10,900 ha of land in new areas in Bengkulu, North Sumatra, Central Kalimantan, South Sumatra and Bangka.

Outlook

With firmer average CPO prices trading above $600/mt and initial signs of improved global economy sentiment, the Group is confident that the prospect for the remainder of 2009 will be less daunting than initially projected and the Board looks forward to a satisfactory profit level and cash flow for the remainder of 2009."

Proxy Votes Received 

The results of proxy card votes received on resolutions to be put to the meeting are:

Number of valid proxy cards: 96

Issued share capital: 39,976,272

Total voting rights: 39,470,272

Number of votes per share: 1

For further information, contact:

Note for editors:

As at 18 June 2009 closing share price of 362.5p, AEP's market capitalisation was £143.08 million.

This announcement contains unaudited and "forward-looking statements" with respect to the financial conditions and operations of the AEP Group that are based on current expectations or beliefs, as well as assumptions about future events. Undue reliance should not be placed on these statements, as they involve risks and uncertainties and can be affected by other factors that could cause the actual results or development to differ materially from those expressed or implied in these forward-looking statements. The forward-looking statements, based on past or current trends and circumstances should not be taken as a representation that such trends and circumstances will continue in the future. AEP undertakes no obligation to revise or update any forward-looking statements contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast.