Anglo-Eastern Plantations Regulatory News (AEP)

18 November 2010

Anglo-Eastern Plantations PLC

Interim Management Statement

Anglo-Eastern Plantations Ltd ("AEP" or "the Group") , which owns approximately 141,000 hectares of plantation land, primarily in Indonesia, and operates approximately 49,700 hectares of developed plantations, today announces its Interim Management Statement in respect of the period since 30 June 2010.

Operational and financial performance

Changing and extreme weather patterns across the region last year and earlier this year, has resulted in biological tree stress, which has translated into lower than expected yields in the year to date. Nevertheless revenue and operating profit remain in line with management expectations.

For the nine months ended 30 September 2010, our own production of fresh fruit bunches ("FFB") and bought in FFB decreased by 5% and 4% respectively, in comparison with the same period in 2009. Total Crude Palm Oil ("CPO") produced was 6% lower than the corresponding period in 2009.

CPO price averaged US$860 per metric tonne (mt) for the three months to30 September 2010; an increase of 7% from the average of US$805/mt recorded in the first half of 2010. For the nine months under review, it registered an average price of US$826/mt, an increase of 22% from the average price of US$679/mt recorded for the year of 2009. Lower FFB production and the weaker US Dollar are the principal drivers behind the price increase.

CPO and FFB prices are now relatively stable and, in the absence of further adverse weather conditions, management is cautiously optimistic on the near term economic prospects of the industry.

The Group's net cash balance at 30 September 2010 was US$35 million, up 29% from US$27.1 million at 30 June 2010. The Company continues to generate positive cash flow.

Development

The Group had planted 4,982 hectares with oil palm seedlings during the first nine months of 2010. New plantings remained behind schedule due to poor weather conditions in South Sumatera.

The Sumindo Mill is now fully operational and has been processing internal and outside crop from other local plantations since May 2010.

Outlook

The CPO price currently stands at US$1,135/mt, representing a 73% increase from US$655/mt recorded at the same period of 2009. As CPO prices surged past US$700/mt, the Indonesian government re-imposed the CPO export tax with effect from April 2010 on progressive rates ranging from 1.5% to 25%. 

The Indonesian Rupiah has strengthened 4% against the US dollar since the beginning of the year. To mitigate exposure to currency exchange volatility, the Group is continuing to manage its cash in dollars and local currencies prudently, taking into consideration its dollar-denominated borrowings and operational cost currencies requirements. The Indonesian Rupiah is currently at Rp 8,963 to US$1, up 1% from Rp 9,083 at 30 June 2010.

Although commodity prices have generally increased throughout the period, we remain cautious on the recovery of global economy going forward. The board remains confident of reporting a satisfactory level of profitability and cash flow generation for the remainder of 2010.

Executive Director

Dato' John Lim Ewe Chuan was appointed as Executive Director for Corporate Finance and Corporate Affairs with effect from 1 September 2010.

For further information, contact:

This announcement contains certain "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. These 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.