28th Sep 2016 09:57
LONDON (Alliance News) - Indonesia-based palm oil producer REA Holdings PLC on Wednesday said lower crop volumes and weaker crude palm oil prices depressed its revenue in the first half of 2016, though its loss narrowed.
The group reported a pretax loss of USD5.2 million, against USD5.5 million a year prior, as revenue fell to USD39.3 million from USD46.2 million a year prior.
REA said its average selling price for crude palm oil in the half was USD516.0 per tonne, down from USD542.0 per tonne a year earlier. It noted palm oil prices have been steadily recovering over the course of the half, and it anticipates this will continue through to 2017.
It produced 225,171 tonnes in the period, down from 277,216 a year before. This resulted from lower crop volumes throughout the East Kalimantan region of Indonesia, where REA operates, following severe dry periods.
REA said that, while it will benefit from palm oil prices improving in the second half, this is likely to be offset by the decline in volumes seen in July and August. Good rainfall, however, should help its operations return to more "normal" levels in 2017.
REA shares were untraded on Wednesday, having last traded at 245.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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