18th Nov 2015 11:02
LONDON (Alliance News) - Anglo-Eastern Plantations PLC Wednesday said production of fresh fruit bunches and crude palm oil grew in the first nine months of 2015, but warned that the price outlook for crude palm oil remains weak.
Anglo-Eastern said production of fresh fruit bunches in the nine months ended September 30 increased 3.0% to 660,500 metric tonnes on the same period in 2014, with 532,100 metric tonnes bought-in, up 11% on the prior year.
Total crude palm oil production rose 6.0% to 239,700 metric tonnes due to both higher fresh fruit bunch production and external fresh fruit bunch purchase.
The group's new planting during the period totalled 1,686 hectares, of which 212 hectares comprising of replanting is behind the expected schedule, Anglo-Eastern said, adding that this is due to it seeking a satisfactory settlement with villagers for land compensation payments.
Anglo-Eastern warned that the continuing downward trend in crude palm oil prices has hampered competitiveness and development in biodiesel, resulting in lower demand for the oil.
It added that the price outlook for the remainder of the year remains weak, while the El Nino weather phenomenon is expected to reduce fresh fruit bunch production in the coming months.
Shares in Anglo-Eastern were trading down 5.8% at 560.00 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Anglo-Eastern Plantations