2nd Aug 2023 12:40
(Alliance News) - REA Holdings PLC on Wednesday said it expects lower revenue in the second half as selling prices and production suffer.
REA is a London-based company engaged in oil palm cultivation in Indonesia, as well as in producing crude palm and palm kernel oil.
The firm said total harvests in the first half of 2023 were 444,629 fresh fruit bunch tonnes, down from 448,886 FFB tonnes the year prior.
REA reported that it produced 90,167 tonnes of crude palm oil, down from 96,299 tonnes a year ago, while palm kernel production was almost flat at 20,300 tonnes, from 20,578 tonnes.
The company noted that CPO prices weakened during the period, reaching a low of UDS855 per tonne in June, compared to USD1,090 per tonne at the beginning of the year.
As a result of falling CPO prices and a decrease in production, the firm said it expects its revenue in the first half to be "significantly lower than in the comparable period of 2022".
Looking ahead, the firm said the average CPO price in the second half of 2022 was USD703 per tonne, compared with USD740 currently, adding that it expects the second half of 2023 to be "more positive".
REA shares fell 5.5% to 54.82 pence each on Wednesday afternoon in London.
By Harvey Dorset, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.