Anglo-Eastern Plantations Regulatory News (AEP)

28 May 2013

Anglo-Eastern Plantations Plc

("AEP", "Group" or "Company")

Interim Management Statement

Anglo-Eastern Plantations Plc and its subsidiaries, which owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 126,000 hectares producing mainly palm oil and some rubber of which approximately 59,400 hectares are planted, today announces its Interim Management Statement in respect of the period since 31 December 2012.

Operational and financial performance

For the first three months ended 31 March 2013, our own production of fresh fruit bunches ("FFB") was 155,900mt, a reduction of 2% compared to the same period in 2012 (3M12: 159,400mt). FFB bought-in was 66,200mt, which represents a decline of 42% in comparison with the same period in 2012 (3M12: 113,200mt). Total Crude Palm Oil ("CPO") produced was 46,300mt, 14% lower than the corresponding period in 2012 (3M12: 54,100mt) due almost entirely to lower purchase of external FFB.

CPO CIF Rotterdam price averaged $845/mt for the first three months to 31 March 2013. This represents a decrease of 24% from the average of $1,107/mt recorded in the first quarter of 2012 but is above the $835/mt being the price at the start of 2013.

The Group's balance sheet remains strong with the Company continuing to achieve positive cash flow generation. The Company's Long Term Development Loans totalled $25.0m as at 31 March 2013 (3M12: $3.2m). The increase was due to drawdown of loans to finance plantation development activities.

Development

New planting by the Group for the first three months ended 31 March 2013 was 427 hectares (3M12: 558 hectares). As indicated in the preliminary announcement on 30 April 2013, new plantings remain behind schedule due to protracted negotiations over settlement of land compensation with villagers and a delay in the issuance of land release permit (Izin Pelepasan) for two plantations. However, one of these plantations has now obtained the necessary permit in April 2013 and shall proceed to prepare the land for planting.

The biogas and biomass project planned for a mill in North Sumatera is expected to cost up to $4.5m. Production of the Dried Long Fibres from the waste empty fruit bunch will start in the fourth quarter of 2013. This project will utilize the mill waste to produce saleable end products while mitigating significantly the emission of biogas.

The earthworks for the mill in Kalimantan commenced in the fourth quarter of 2012 while civil and mechanical works is expected to begin in the third quarter of 2013. This mill is expected to be completed in first quarter of 2015 with an initial capacity of 45mt FFB/hr. The earthworks for a further mill in North Sumatera which started in the first quarter of 2013 is expected to progress with civil works in the fourth quarter of 2013. This mill is expected to be completed by the second quarter of 2015 with a final capacity of 60mt FFB/hr.

Outlook

The CPO price closed at $850/mt in mid-May 2013, representing a 2% increase from $835/mt from the start of the year. Although the CPO price remained under pressure during first quarter of 2013 due to the continuing high levels of supply and slower growth in demand from China and India, we anticipate that CPO price may improve slightly in second quarter as palm oil enters its low production cycle. But a weaker third quarter CPO price may be in store when a projected record harvest of soybean crops enter the market.

Given that the price of commodities has remained generally stable throughout this period, and the demand for the Group's products remains strong, the Board is cautiously confident of reporting a satisfactory profit level and cash flow for the remainder of 2013.

For further enquiry, contact: