22nd May 2018 14:21
LONDON (Alliance News) - Anglo-Eastern Plantations PLC on Tuesday said first quarter production of fresh fruit bunches increased, while crude oil production and its price fell slightly.
The palm oil producer, which also produces some rubber, has operations in Malaysia and Indonesia and said it produced 232,400 metric tonnes of its own fresh fruit bunches during the three months to the end of March while 211,900 metric tonnes were brought-in from third parties.
For the same period the year before, Anglo-Eastern Plantations produced 223,900 metric tonnes of own fruits and brought 239,800 metric tonnes from third parties.
Anglo-Eastern produced 4.0% more of its own fresh fruit bunches compared to the previous year, thanks to the higher harvest in Riau and Kalimantan fields in Indonesia. The amount purchased declined 12% as competition among new mills intensified in comparison with the same period in 2017.
As a result, production of crude palm oil was down 3.0% year-on-year at 91,400 metric tonnes from 94,200 metric tonnes, with prices averaging 13% lower than a year earlier at USD672.0 per metric tonne compared to UDS774.0n per metric tonne. However, that price has recovered to the USD678.0 per metric tonne at the start of 2018.
Net cash at the end of March stood at USD117.7 million.
The company planted 240 hectares of new plantations in the quarter and the replanting of around 418 hectares will begin in North Sumatera, Indonesia, in the second quarter before being completed by the end of the year.
The biogas plant in Kalimantan is expected to begin commercial operation by the third quarter of 2018, the company said, after installation of about seven kilometres of medium voltage transmission line.
Meanwhile, Anglo-Eastern Plantations said that it started earthwork on the seventh mill in North Sumatera, costing around USD19.0 million, and expects to complete it by year end.
Looking ahead, the company said it forecasts crude palm oil prices to remain weak for the rest of the year due to concerns of over supply of fresh fruit bunches production in Indonesia and Malaysia and pressure from larger production of competing oil.
Shares in Anglo-Eastern Plantations were trading 0.5% lower at 750.00 pence each on Tuesday afternoon.
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