16th Sep 2015 10:18
LONDON (Alliance News) - MP Evans Group PLC on Wednesday said it expects its results for 2015 to be lower than in 2014 due to the continued weakening of palm-oil prices, and it reported a fall in pretax profit for its first half.
MP Evans is a producer of Indonesian palm oil and Australian beef cattle. However on Tuesday it agreed a deal to sell its Australian cattle-fattening property in southern Queensland for AUD28.0 million to Chinese automotive parts company Fucheng Group. The proceeds from the sale will be used to pay down its debt and to back its expansion in the Indonesian palm oil sector.
For the half year to end-June, MP Evans reported a pretax profit of USD5.5 million, down from USD15.4 million a year before, on revenue of USD39.2 million, down from USD47.5 million. Including a share of associated companies' profit after tax, MP Evans reported a profit of GBP15.3 million, compared to GBP19.0 million a year before.
MP Evans proposed an interim dividend of 2.25 pence, maintained from the previous year.
The company said its first half had been hit by continued low palm-oil prices. However, it remains of the view that the long-term prospects for palm oil are promising. Cattle prices have remained at robust levels since the half year, MP Evans said, but palm-oil prices have weakened further.
In 2014, the company reported a net profit of USD33.7 million, bolstered by an increase in its Indonesian crops of oil palm fresh fruit bunches.
Shares in MP Evans were down 2.2% at 352.20 pence Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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