15th Nov 2016 12:03
LONDON (Alliance News) - Anglo-Eastern Plantations PLC on Tuesday said total crude palm oil production declined in the nine months ended September 30 when compared with the same period the prior year, due to less production and purchasing of fresh fruit bunches.
The group, which owns, operates and develops plantations in Indonesia and Malaysia, said it produced 628,700 metric tonnes of fresh fruit bunches, down 5.0% on the same period the prior year. Fresh fruit bunches bought-in declined 4.0% to 509,250 metric tonnes from 532,100 metric tonnes the prior year.
Anglo-Eastern Plantations said the total crude palm oil produced in the nine-month period was 235,350 metric tonnes, down 2.0% from the same period the prior year, as a result of the lower production and purchase levels.
However, the CIF Rotterdam price for the crude oil averages at USD688 per metric tonne for the period, which is 9.0% ahead of the USD630 per metric tonne price recorded for the comparative period and is above the USD570 per metric tonne at the start of 2016.
The group said its balance sheet remains strong and said it was continuing to generate positive cash flow. At September 30, Anglo-Eastern Plantations had net cash of USD72.7 million, up from USD68.3 million the prior year.
The company said its new planting for the nine-month period totalled 1,003 hectares, of which replanting made up 309 hectares. The group said it was continuing to face difficulties in concluding land compensation settlement with villagers in Sumatera due to "unreasonably high land prices", but said negotiations were ongoing.
The construction of the two biogas plants for the mills in Bengkulu and Kalimantan are in the final stages of construction, the company said, with membranes having been installed to trap the biogas emitted from the palm oil mill effluents.
Various equipment are being progressively installed and should be ready by the end of the year, Anglo-Eastern Plantations said.
Shares in Anglo-Eastern Plantations were down 2.7% at 550.00 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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