24 June 2024
Anglo-Eastern Plantations
Plc
("AEP" or the
"Company")
AGM
Statement
The 39th Annual General Meeting of
Anglo-Eastern Plantations Plc will be held at the offices of UHY
Hacker Young LLP, 6th floor Quadrant House, 4 Thomas
More Square, London E1W 1YW at 11 am today.
At the meeting, the Chairman will
comment on current operational performance and development as well
as the outlook for the remainder of 2024.
Operational and financial performance
For the first five months ended 31 May 2024, our own
production of fresh fruit bunches ("FFB") was 403,200mt, a decrease
of 4% compared to the same period in 2023 (five months to May 2023:
420,300mt). Production in Kalimantan in the second quarter of 2024
was slightly lower compared to first quarter due to higher rainfall
of more than 300 mm per month for two consecutive months which
affected harvesting. Crop production was nevertheless up
2% against last year as
most trees reached peak maturity and a 6% increase in matured
areas. Plantations in North Sumatera, Riau and Bengkulu,
experienced a drop in production ranging from between
2% to 18%. Lower
production numbers in North Sumatera and Bengkulu were particularly
due to replanting activities. The matured areas in North Sumatera
and Bengkulu at the end of May 2024 compared to the same period
last year were further reduced by 300 hectares and 490 hectares
respectively as more trees were felled for replanting. Five months
of exceptional high rainfall in Bengkulu, averaging more than 400
mm per month also interfered with harvesting activities.
FFB bought-in was 367,700mt, a
decrease of 9% in comparison with the same period last year (five
months to May 2023: 404,000mt). As mentioned above, excessive rain
inadvertently damaged roads which affected the delivery of external
crops to our mills in Tasik and Bengkulu which led to a decrease in
external crops by 21% and 9% respectively compared to the same
period last year. The Kalimantan mill also bought 52% less external
crops for the first five months of 2024 as it lost a major supplier
which started processing its own crop. Crude Palm Oil ("CPO")
production for the first five months of 2024 was 154,400mt, 9%
lower than the corresponding period in 2023 (five months to May
2023: 169,200mt) due to lesser bought-in
crops as well a drop in our own crop production.
The CPO ex-Rotterdam price averaged
$1,014/mt for the first five months to 31
May 2024, 1% higher than the average price for the corresponding period in 2023 (first five months to May
2023: $1,006/mt). The average ex-mill price
for the same period however was lower at $750/mt, a 2% decline
compared to the corresponding period in
2023 (first five months to May 2023: $768/mt).
Development
AEP has plantations across Indonesia
and Malaysia, amounting to approximately 90,500 hectares, of which
approximately 68,615 hectares including plasma are planted.
The Group's new planting and replanting including
Plasma for the first five months ended 31 May 2024 was 426 hectares
(five months to May 2023: 916 hectares). New replanting and
replanting activities slowed down as usage of heavy machineries was
curtailed due to the higher rainfall.
As reported previously,
the HPP mill has commenced operation in the
first quarter of 2024 but has only processed its own crop. It will
start purchasing external crops once the effluent treatment plant
is fully commissioned, which is expected to be in the third quarter
of 2024, to increase the utilisation of the mill.
The earthworks design for the eight
mill in the KAP estate in Kalimantan has been completed. The
building permit is pending the evaluation of the Enviromental
department of which we have been assured is at the final stage of
approval. We are hopeful to start the earthworks by the third
quarter of 2024.
Outlook
The CPO price ex-Rotterdam closed at
$1,018/mt on 5 June
2024, representing an increase of 9% from the start of the year at
$935/mt. The demand for CPO is expected to remain weak and may
decline in the near term, especially against the backdrop of a
seasonal increase in soybean production in South America.
We further expect weaker CPO prices going forward
as harvest generally peak in the second half of the year barring a
drastic change in weather forecast.
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
domestic law by virtue of the European Union (Withdrawal) Act
2018.
For
further enquiry, contact:
Anglo-Eastern Plantations
Plc
Dato' John Lim Ewe
Chuan
+44 (0)20 7216 4621
Panmure Gordon (UK)
Limited
Dominic Morley / Amrit
Mahbubani
+44
(0)20 7886 2500