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10 Nov 2009 08:34
RNS Number : 2594C
Anglo-Eastern Plantations PLC
10 November 2009
10 November 2009
Anglo-Eastern Plantations PLC
Interim Management Statement
Anglo-Eastern Plantations Ltd ("AEP" or “the Company”) , which owns approximately 132,000 hectares of plantation land, primarily in Indonesia, and operates approximately 46,000 hectares of developed plantations, today announces its Interim Management Statement in respect of theperiod since 30 June 2009.
Operational and financial performance
For the nine months ended 30 September 2009, our own production of fresh fruit bunches ("FFB") and bought in FFB increased by 10% and 2% respectively, in comparison with the same period in 2008. Total Crude Palm Oil (“CPO”) produced was 6% higher than the corresponding period in 2008.
CPO price averaged US$680 per metric tonne (mt) for the three months to 30 September 2009; an increase of 5% from the average of US650/mt recorded in the first half of 2009. For the nine months under review, it registered an average price of US$660/mt, a decrease of 31% from the average price of US$950/mt recorded for the year of 2008.
The continuing recovery in CPO prices means that for the nine month period to 30 September 2009, revenue and operating profit are both showing signs of improvement and management is cautiously optimistic on the near term economic prospects of the industry.
AEP’s balance sheet remains strong. The Company continues to achieve strong cash flow generation. AEP had a net cash position of US$28million at 30 September 2009.
Development
The Group's development is on schedule, with 3,079 ha already planted with oil palm seedlings during the first nine months of 2009. Field planting has commenced in PT ELAP in South Sumatra region, with PT SGM in central Kalimantan targeted in November.
Outlook
The CPO price ended at US$695/mt in October 2009, representing a 51% decline from its peak of US$1,420/mt recorded in March 2008. As previously reported the Indonesian government has annulled the export tax on CPO to zero, since November 2008, for CPO prices below US$700 to help cushion the steep decline in CPO prices. There was 3% CPO export tax for the month of June and July 2009.
The Indonesian Rupiah that went through a rather volatile period last year has strengthened against the US dollar in the current period. 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.
We are fortunate that there were no serious damages to our assets in Bengkulu although the estates are situated about 200 km from Padang where an earthquake occurred in early October. Although initially we were affected by the bad road conditions leading to Padang, CPO transportation to Padang is now back to normal.
Although production has grown as planned and commodity prices have remained generally stable throughout the period, the global recessionary market sentiment does create some uncertainty going forward. Despite the weak economy outlook, demand for the Group’s products remains strong. The board remains cautiously confident of reporting a satisfactory profit level and cash flow for the remainder of 2009.
For further information, contact:
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Anglo-Eastern Plantations plc
Donald H Low
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Tel 020 7216 4600
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Charles Stanley Securities
Russell Cook / Jen Boorer
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Tel 020 7149 6000
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Note for editors:
AEP operates and is developing some 132,000 hectares(ha) of plantations, primarily palm oil in Indonesia, of which approximately 46,000 ha are planted.
As at 31 October 2009 closing share price of 372.5p, AEP's market capitalisation was £147.03 million.
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.
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