Anglo-Eastern Plantations Regulatory News (AEP)

23 May 2019

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 232,900mt, an increase of 0.2% 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 66,900 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.

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