Anglo-Eastern Plantations Regulatory News (AEP)

23 May 2017

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

Trading Statement

Anglo-Eastern Plantations Plc and its subsidiaries, is a major producer of palm oil and some rubber across Indonesia and Malaysia, amounting to some 128,600 hectares of which approximately 67,000 hectares (including Plasma) are planted, today announces a trading update in respect of the period since 31 December 2016.

Operational and financial performance

For the first three months ended 31 March 2017, our own production of fresh fruit bunches ("FFB") was 223,900mt, an increase of 20% compared to the same period in 2016 (3M16: 187,000mt). Higher production was due to the recovery of FFB production in Riau and Kalimantan where the effects of drought and dry weather were evident last year. FFB bought-in was 239,800mt, which represents an increase of 117% in comparison with the same period in 2016 (3M16: 110,800mt) due mainly to the upsurge of FFB production in surrounding plantations. As a result the Crude Palm Oil ("CPO") produced was 94,200mt, 49% higher than the corresponding period in 2016 (3M16: 63,200mt).

CPO CIF Rotterdam price averaged $774/mt for the first three months to 31 March 2017. This represents an increase of 23% from the average price of $630/mt recorded in the first quarter of 2016 but is below $790/mt being the price at the start of 2017.

The Group's balance sheet remains strong with the Company continuing to generate positive cash flow. The Company's Long Term Development Loans totalled $32.7m as at 31 March 2017 (31 March 2016: $35.8m). The Group has net cash of $97.7m as at 31 March 2017.

Development

The Group's new planting for the three months ended 31 March 2017 totalled 363 hectares (including Plasma). A replanting of about 1,700 hectares in North Sumatera will begin in the second quarter of 2017 and should be completed by the year end.

The piping and electrical works for the biogas plants in Bengkulu and Kalimantan are nearing completion. The Bengkulu biogas plant is expected to generate a surplus of 1.8 megawatt of electrical power from the second quarter of 2017. The Group is committed to gradually reduce its greenhouse gas emissions from the palm oil mills.

Outlook

The CPO CIF Rotterdam price started the year at $790/mt and reached a peak price of $852/mt in middle of January 2017. Since then it appears to trend downwards and closed at $685/mt on 31 March 2017. The CPO price is forecasted to remain weak for the rest of the year due to concerns of oversupply from the recovery of FFB production in Indonesia and Malaysia and pressure from larger production of competing oil.

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