29th Jun 2015 08:00
LONDON (Alliance News) - Anglo-Eastern Plantations PLC Monday said crude palm oil prices and production have fallen in 2015, but said it "cautiously expects" profitability and cash flow to hit expectations in 2015.
The crude palm oil producer in Indonesia and Malaysia said its own production of fresh fruit bunches, from which crude palm oil is produced, fell 1% to 311,950 metric tonnes in the five months ended May 31, whilst fresh fruit bunches that are purchased in from local farmers rose 5% to 264,650 metric tonnes.
Total crude palm oil production was 111,400 metric tonnes, 3% lower than a year earlier due to a lower extraction rate, it said.
Crude palm oil prices have also fallen in the five-month period, down 27% year-on-year to USD662 per metric tonne compared to USD903 per metric tonne. Since the beginning of 2015, the price has fallen by around 6%.
"We anticipate that crude palm oil price will remain generally stable and the Board cautiously expects profitability and cash flow to remain in line with management forecasts for 2015," said the company.
Anglo-Eastern planted an additional 760 hectares of new plantations in the period, compared to 747 hectares last year. The company reiterated that new plantings remain behind schedule due to delays in finalising settlement of land compensation with villagers in Bengkulu, Bangka and Kalimantan in Indonesia.
"The company is continuing with the somewhat protracted negotiations with the villagers' representatives, in full accordance with our obligations under Indonesian law, to achieve a fair and reasonable result for all parties," said Anglo-Eastern.
Anglo-Eastern shares were down 3% to 600.0 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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