10th Jun 2016 11:24
LONDON (Alliance News) - MP Evans Group PLC Friday said that its overall crop of oil-palm fresh fruit bunches in the first five months of 2016 was 8% lower than the previous year, hit by the acute dry spell caused by the 'El Nino' phenomenon.
In a statement ahead of its annual general meeting MP Evans said its overall crop was 142,000 tonnes for the five months, down from the 154,100 it recorded the previous year, which it said "reflects a widespread downturn in production throughout South East Asia."
The company said that whilst there has been some rain, its low-crop trend will only be reversed once rainfall returns to a more normal pattern. In the medium term the overall upward trend in crops is expected to continue, and will accelerate when young areas on its new Musi Rawas project in South Sumatra and areas undergoing replanting in its North Sumatran estates start to produce.
Palm oil prices averaged USD664 per tonne in the five months, compared to USD673 the same period in the previous year.
Construction of its third palm oil mill on the Bangka project was completed on schedule and in budget.
In May the company sold its 34% stake in the North Australian Pastoral Co Pty Ltd for AUD107 million, or around USD80 million at current exchange rates. It plans to use the proceeds for a significant capital investment programme, and to pay a special dividend of 5 pence per share.
Shares in MP Evans were down 0.6% at 415.16 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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