2nd Jun 2014 09:39
(An item published May 16 misstated volumes of palm oil and fresh fruit bunches. They are all measured in metric tonnes. The correct version follows.)
LONDON (Alliance News) - Anglo-Eastern Plantations PLC cautiously reiterated its profit and cash flow forecasts for 2014, as it expects the price of crude palm oil to remain generally stable, despite concerns that reduced output would force buyers to reduce their purchases.
Anglo-Eastern owns, operates and develops plantations in Indonesia and Malaysia.
The price of crude palm oil closed at USD905 per metric tonne in mid-May, up 2% from the start of the year. The price peaked at USD993 per tonne in early March due to concerns that the weather pattern caused by El Nino would reduce output and force buyers to reduce their purchases.
During February palm oil imports in February dropped to a near three-year low. However, Anglo-Eastern expects the price of crude oil to remain stable due to to increased demand from biodiesel and modest levels of industry output.
In the quarter to end-March the company produced 180,630 tonnes of fresh fruit bunches, up 16% on the previous year. Fresh fruit bunches brought in was 135,300 tonnes, up 104% compared to 66,200 tonnes in 2013.
Crude palm oil produced was 64,000 tonnes, up 38%.
The price of crude oil average USD904 per tonnes during the quarter, up 7% from the previous year and within the company's expected price range of between USD800 per tonne to USD1,000 per tonne.
It planted 427 new hectares during the quarter, less than it planned due to delays in finalising compensation payments to villagers in Bengkulu and Bangka. Anglo-Eastern said the villagers had asked for compensation beyond what it considered reasonable.
The construction of its 45 tonnes per hour mill in Central Kalimantan was disrupted in the second quarter of 2013 due to heavy rainfall, however, this construction is now progressing and is expected to be operational in the second quarter of 2015. It is considering two potential sites for the construction of a another mill in Sumatra.
It has nearly completed its USD5 million biogas and biomass project for one of its mills in North Sumatera, and expects final testing and commissioning of the project by the end of the second quarter. It expects this to significantly reduce its greenhouse gas emissions at the mill.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Anglo-Eastern Plantations