14th Apr 2015 10:51
LONDON (Alliance News) - MP Evans Group PLC Tuesday reported higher profit in 2014, bolstered by its Indonesian palm oil operations.
The AIM-listed company, which produces palm oil in Indonesia and has a 34% stake in a cattle company in Australia, said it made a USD33.7 million net profit in 2014, compared with USD19.8 million in 2013. MP Evans raised its dividend for the year by 0.50 pence to 8.75p, citing the improvement in profit.
MP Evans said that the profit increase was primarily due to a 12% increase in its Indonesian crops of oil palm fresh fruit bunches to 385,400 tonnes, even though the average price of palm oil fell by 4% to USD821 per tonne, with crop levels benefitting from two new projects in East Kalimantan and on Bangka Island.
In Australia, beef-cattle property Woodlands recorded a profit of about USD200,000, compared with a loss of about USD100,000 in the prior year. The North Australian Pastoral Company Pty Ltd, in which MP Evans has a 34.37% stake, provided USD1.5 million of profit to MP Evans, compared with a USD2.4 million loss in the prior year.
MP Evans' total share of associated companies' profit, helped by the turnaround at The North Australian Pastoral Company, increased to USD14.3 million from USD11.6 million, while group-controlled pretax profit was USD34.9 million, up from USD12.2 million.
"The continuing upward trend of fresh fruit bunches crops on the new projects, excellent extraction rates and the beneficial effect on costs of the weakening of the Indonesian Rupiah resulted in a significant improvement in plantation profits," Peter Hadsley-Chaplin, executive chairman, said in a statement.
"The cattle operations benefited from markedly improved prices. Cattle prices have remained firm so far in 2015 but palm-oil prices, having weakened sharply in the last quarter of 2014, have not, to date, shown any significant improvement. Nonetheless, healthy profit margins are still achievable," Hadsley-Chaplin said.
Revenue increased to USD90.9 million from USD82.2 million, while gains on biological assets increased to USD15.1 million from USD9.1 million. Currency losses fell to USD2.4 million from USD8.3 million and planting expenditure was stable at USD6.3 million.
NAPCo had been up for sale after a strategic review by its majority owners in 2013. The majority owners and MP Evans had been willing to sell at least part of their holdings but no sale was made. MP Evans said it will "continue to consider any opportunities that arise in relation to its holding".
MP Evans shares were up 1.6% at 400.46 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
M P Evans