Anglo-Eastern Plantations Regulatory News (AEP)

7 November 2019

Anglo-Eastern Plantations PLC

("AEP" or the "Company")

Trading Statement

Anglo-Eastern Plantations Plc, a major producer of palm oil and some rubber across Indonesia and Malaysia, today announces a trading update in respect of the third quarter since 30 June 2019.

Operational and financial performance

For the first nine months ended 30 September 2019, our own production of fresh fruit bunches ("FFB") was 765,240mt, a decrease of 3% compared to the same period in 2018 (9M18: 787,160mt). FFB bought-in was 690,470mt, which represents a decrease of 9% in comparison with the same period in 2018 (9M18: 760,460mt). Total Crude Palm Oil ("CPO") produced was 296,600mt, 6% lower than the corresponding period in 2018 (9M18: 316,920mt) due to both lower FFB production and external FFB purchase.

CPO price ex-Rotterdam averaged $528/mt for the first nine months of 2019. This represents a significant decrease of 16% from the average price of $629/mt recorded in the comparative period of 2018. CPO prices however have been climbing steadily since the last quarter. CPO ex-Rotterdam closed at $601/mt on 25 October 2019, representing a 16% increase from $517/mt at the start of the year. CPO prices are expected to rise on the back of a reduction in supply due to reduction of fertiliser application by planters, dry weather and biological tree stress after a bumper harvest last year.

The Group's balance sheet remains strong. The Company's Long Term Development Loans totalled $10.9m as at 30 September 2019 (3Q18: $23.6m). The Group had net cash of $81.2m as at 30 September 2019 (3Q18: $98.3m). The cash generated from operations was unable to meet the spending on investing activities resulting in a lower net cash position.

Development

AEP has plantations across Indonesia and Malaysia, amounting to some 128,200 hectares, of which approximately 70,600 hectares (including Plasma) are planted. The Group's new planting for the nine months ended 30 September 2019 totalled 871 hectares (including Plasma). Planting has generally been slow due to the dry weather across Indonesia. In Kalimantan planting can only begin after completion of the peer review on the high carbon stock sustainability study ("HCS") expected at the beginning of the fourth quarter of 2019.

The earthwork for the seventh mill in North Sumatera has been completed and the next phase of inviting tenders for civil and structural works shall begin shortly.

The construction of the fourth biogas plant in North Sumatera is progressing well. Most of the equipment including biogas engine and ancillaries have been installed with electrical and external piping works expected to be completed in last quarter of the year.

Outlook

Stronger CPO prices are expected in the fourth quarter of 2019 and next year based on the anticipated tightening of palm oil supply and implementation of the B30 biodiesel programme in Indonesia come January 2020.

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Note: The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014.