Last checked at 29 May 2019 08:48
29 May 2019
Anglo-Eastern Plantations PLC
("AEP" or the "Company")
Further On Trading Statement
It has come to the Company's attention that there were two errors in its trading statement announced at 11.52am on 23 May 2019 under RNS 0127A. First, as set out in the first paragraph under "Operational and financial performance", the Company's own production of fresh fruit bunches for the first three months ended 31 March 2019 was 238,900mt, not 232,900mt as originally announced. This represents an increase of 3% compared to the same period in 2018. Second, under the heading "Development", the reference to AEP's planted acreage should have read 70,200 hectares instead of 66,900 hectares.
All other details remain unchanged. The full text of the amended announcement is set out below.
"Anglo-Eastern Plantations PLC
("AEP" or the "Company")
Trading Statement
Anglo-Eastern Plantations, a major producer of palm oil and some rubber across Indonesia and Malaysia, today announces a trading update in respect of the first quarter since 31 December 2018.
Operational and financial performance
For the first three months ended 31 March 2019, our own production of fresh fruit bunches ("FFB") was 238,900mt, an increase of 3% compared to the same period in 2018 (3M18: 232,400mt). Our plantations in North Sumatera and Kalimantan experienced a better harvest whereas our plantations in the Bengkulu and Riau regions saw a drop in production. FFB bought-in was 196,400mt (3M18: 211,900mt), a decrease of 7% in line with a drop in FFB harvested in the same region, especially in Bengkulu as compared to the same period in 2018. As a result, the Crude Palm Oil ("CPO") produced was 88,100mt, 4% lower than the corresponding period in 2018 (3M18: 91,400mt).
The CPO price ex-Rotterdam averaged $538/mt for the first three months to 31 March 2019. This represents a decline of 20% from the average price of $672/mt recorded in the first quarter of 2018 but is above $517/mt, the prevailing price at the start of 2019.
The Group's balance sheet remains strong. The Company's Long Term Development Loans totalled $18.8m as at 31 March 2019 (31 March 2018: $25.9m). The Group has net cash of $95.3m as at 31 March 2019.
Development
AEP has plantations across Indonesia and Malaysia, amounting to some 128,200 hectares, of which approximately 70,200 hectares (including Plasma) are planted. The Group's new planting for the three months ended 31 March 2019 totalled 399 hectares (including Plasma).
The biogas plant in Kalimantan is in full operation and has started supplying electricity to the national grid from the end of first quarter of this year.
Earthworks for the seventh mill in North Sumatera are still in progress amidst delay caused by heavy rainfall. The building and the infrastructure works are expected to commence in the latter half of the year with completion expected at the end of 2021.
Outlook
The CPO price ex-Rotterdam started the year at $517/mt and reached a peak of $570/mt in February 2019. Since then it has trended downwards and closed at $514/mt on 31 March 2019. Palm oil prices are at a large price discount to soybean oil, although it remains volatile.
Note: The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014."
For further enquiry, contact:
Anglo-Eastern Plantations PLC
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon (UK) Limited
Dominic Morley +44 (0)20 7886 2954