Anglo-Eastern Plantations Regulatory News (AEP)

15 May 2008 07:00



Thursday 15 May 2008

ANGLO-EASTERN PLANTATIONS PLC

Interim Management Statement

"prospects for 2008 remain very positive" 

Anglo-Eastern (AEP.L), which operates and is developing some 83,000 hectares (ha) of plantations, primarily palm oil in Indonesia, announces its first Interim Management Statement, in respect of the period since 1 January 2008. 

The strong trading and encouraging prospects reported in the Preliminary Announcement of 30 April 2008 have continued. 

For the first quarter, ended 31 March 2008, revenue was more than double that of the first quarter of 2007 at over $49m, helped by high CPO (crude palm oil) prices. The CPO price, which ended 2007 at $960/mt, continued its upward trend, peaking at $1,390/mt, and averaged $1,151 for the quarter (which compares with $607 for the first quarter of 2007 and $790 for the whole of 2007). The Group did not receive the full benefit of rising prices in its results because of increases in Indonesian export taxes which came into effect in March 2008 and which effectively cap prices at $1,000-$1,050/mt.

For the first quarter, operating profit and profit before tax are both well ahead of those for the first quarter of 2007, while net cash at 31 March 2008 is up on the December 2007 figure of $23.3m.   

For the four months to 30 April 2008, FFB (fresh fruit bunches) production is 18% higher than the same period in 2007. Crops from the Bengkulu estates have recovered from the delayed effects of the 2006 drought and are 20% ahead, whilst those at the rehabilitated Bina Pitri estate are well up on the comparable period. CPO production was around 60,000 mt, enhanced by bought-in FFB which exceeded expectations by 30%.

The Group's development is proceeding according to plan, with around 5,000 ha of new oil palm planting in progress and due to be completed during 2008. This means that the existing Bengkulu estates will be fully planted by the year end.  In January 2008, the Group acquired for a cash consideration of $3.8m a 95% interest in PT Riau Agrindo Agung, an Indonesian company owning the rights to 15,000 ha of vacant land in Bengkulu province. Along with the three acquisitions that took place in 2007, this gives the Group an additional 40,000 ha of plantable land. 

Prospects for 2008 remain very positive. In the absence of substantial adverse movements in the CPO price, production and Indonesian export taxes, the Board continues to expect a satisfactory increase in profits and cash flow for 2008. 

Note for editors:

At last night's closing mid-market share price of 600p, Anglo-Eastern's market capitalisation was £240m.