28th Aug 2018 17:53
LONDON (Alliance News) - Palm oil and rubber producer Anglo-Eastern Plantations PLC on Tuesday reported a profit drop of nearly a third in the first half of 2018 due to lower prices and higher operational costs.
In the six months to June 30, Anglo-Eastern's total pretax profit dropped to USD22.0 million from USD31.6 million as its profit margin dropped to 19% from 24% on sinking palm oil and rubber prices.
Revenue sank to USD133.3 million from USD146.9 million as external crop purchases decreased, and maturing plantations contributed to higher operational costs.
Anglo-Eastern did not declare a dividend for the period, in line with previous years, but did pay its 2017 final dividend of 4.0 cents in July, which was a 5% improvement from 3.8p the year prior.
"The demand for palm oil in India may rebound in the second half of 2018 as India has reportedly raised the import taxes on soft oils from July 2018 making palm oil more competitive again," said said Chairman Lim Siew Kim.
"Also, the higher tariff on the import of soybean from United States into China could lead to an increase in demand for palm oil, being the closest substitute to soybean. This higher tariff would make palm oil more attractive as the price difference between crude palm oil and soybean oil would be widened further," Kim added.
Anglo-Eastern shares closed up 0.4% at 678.00 pence each.
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