Anglo-Eastern Plantations Regulatory News (AEP)

8 November 2017

Anglo-Eastern Plantations Plc

("AEP" or "Group")

Trading Statement

Anglo-Eastern Plantations Plc and its subsidiaries, which owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 128,400 hectares producing mainly palm oil and some rubber of which approximately 67,530 hectares are planted, today announces a trading update in respect of the period since 30 June 2017.

Operational and financial performance

For the first nine months ended 30 September 2017, our own production of fresh fruit bunches ("FFB") was 690,520mt, an increase of 10% compared to the same period in 2016 (9M16: 628,740mt). FFB bought-in was 749,050mt, which represents an increase of 47% in comparison with the same period in 2016 (9M16: 509,250mt). Total Crude Palm Oil ("CPO") produced was 290,840mt, 24% higher than the corresponding period in 2016 (9M16: 235,350mt) due to both higher FFB production and external FFB purchase.

CPO CIF Rotterdam price averaged $723/mt for the first nine months to 30 September 2017. This represents an increase of 5% from the average price of $688/mt recorded in the comparative period of 2016 however it is below the price of $795/mt 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 $31.0m as at 30 September 2017 (3Q16: $35.5m). The Group had net cash of $110.9m as at 30 September 2017 (3Q16: $72.7m).

Development

The Group's new planting for nine months ended 30 September 2017 totalled 1,636 hectares, of which replanting made up 563 hectares. As reported previously the Group is facing difficulty in concluding land compensation settlement with villagers in Bengkulu and Bangka due to unreasonably high land prices with negotiations continuing. 

The 2 Megawatt biogas plant for the mill in Bengkulu has been completed and presently supplying electricity to the State Electricity Company. The plant has supplied over 2,590 MWh since it began operations in May 2017. The biogas plant in Kalimantan has also been completed and is ready for commissioning. The mills will further reduce their reliance on fossil fuels and at the same time reduce the Group's carbon footprint.

Outlook

CPO closed at the price of $725/mt on 6 November 2017, representing a 9% decrease from $795/mt from the start of the year. This is due to the recovery of FFB production post El-Nino weather phenomenon.

The CPO price for the remainder of the year should remain relatively stable especially with the coming monsoon which is expected to disrupt FFB production.

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