Anglo-Eastern Plantations Regulatory News (AEP)

2 November 2022

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 covering the nine months to 30 September 2022.

Operational and financial performance

For the first nine months ended 30 September 2022, our own production of fresh fruit bunches ("FFB") from continuing operations was 859,900mt, a decrease of 3% compared to the same period in 2021 (9M21: 886,980mt). Replanting in Bengkulu has reduced the matured areas by almost 1,800 hectares over the last two years which explained the decline of 11% in production in this region. Production in Kalimantan region also experienced a drop of 8% due mainly to seasonal variation. FFB bought-in was 845,850mt, a decrease of 4% in comparison with the same period in 2021 (9M21: 878,590mt). Although North Sumatera and Kalimantan regions managed to increase their purchase of outside crops compared to the corresponding period in 2021, that did not make up for the 17% decrease in crop purchase in the Bengkulu region, which was caused by the temporary shutdown of a supplier's mill for maintenance in 2021. In addition, some of AEP's mills had to reduce external crop purchases as their storage tanks for CPO reached maximum capacity as inventories built up during the export ban which lasted almost a month. Total Crude Palm Oil ("CPO") produced was 351,460mt, a decrease of 3% compared to the corresponding period in 2021 (9M21: 364,040mt) due to lower FFB supplied from both our own estates and bought-in crops.

CPO price ex-Rotterdam averaged $1,471/mt for the first nine months of 2022. This represents a significant increase of 27% from the average price of $1,156/mt recorded in the corresponding period in 2021. Prices remain volatile as CPO price ex-Rotterdam closed at $995/mt on 11 October 2022 compared to $1,350/mt at the start of the year. Our Group's average ex-mill price for CPO for the first nine months of the year was also higher by 23% at $896/mt (9M21: $731/mt). The Group also benefited from higher palm kernel prices which were 35% higher at the average price of $635/mt against $469/mt last year.

The Group's balance sheet remains strong with no outstanding bank loans. The Group had net cash of $252.6m at 30 September 2022 (3Q21: $192.2m).

Development

The Group's total landholding from its continuing operations comprises some 90,690 hectares of which the planted area stands at around 68,000 hectares. The Group's new planting and replanting for the nine months ended 30 September 2022 totalled 1,367 hectares (including Plasma) against 2,129 hectares for the corresponding period last year. Plasma planting for the period was 201 hectares (9M21: 352 hectares).

The construction works of the seventh mill in North Sumatera is approaching the final stage of completion. There have been considerable delays due to the late delivery of imported items caused by the long administrative process in obtaining approval from the Government authorities. Bad weather also delayed the construction of the effluent treatment plant which consists of multiple tanks for the anaerobic and aerobic system to comply with the Environmental Impact Assessment study. The mill is likely to be completed by the end of Q4 2022 and to be commissioned in Q1 2023.

Outlook

CPO prices are expected to be weak for the remaining part of the year as the industry enters into the high production season. In addition, the Indonesian government's decision to waive the export levy until the end of October 2022, in its effort to flush out and reduce its stockpile of palm oil, could push prices even lower.

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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 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.