7th Feb 2020 12:25
(Alliance News) - Crude palm oil producer REA Holdings PLC on Friday said palm oil production improved over 2019, but its selling price fell by 17%.
During the year, REA said it sowed fresh fruit bunch crops of 999,403 tonnes, up 0.8% from 991,278 tonnes a year earlier.
Turning to production, the company said 979,411 fresh fruit bunches were processed, up 1.0% from 969,356 a year prior, with palm crude oil output up 3.3% to 224,856 from 217,721.
Less positively, the London-headquartered company said it expects to incur foreign exchange losses for the year of USD8.5 million against USD5 million at the half-year stage, amid strengthening of the Indonesian rupiah during 2019.
The company said, for 2019, it expects to report an average net selling price for crude palm oil, net of export levy and duty, of USD454 per tonne. A year ago, the crude palm oil price averaged at USD549.
Looking ahead, REA said there were some limited drier periods in the second half of 2019 and rainfall was unusually localised with not all areas receiving the same levels of rainfall. The effect of this on 2020 crops is difficult to predict, but the company said it anticipates crop levels and yields are expected at least to be maintained at current levels.
REA shares were trading 5.3% lower in London on Friday at 162.00 pence each.
The company said it will report its 2019 results in the second half of April.
By Evelina Grecenko; [email protected]
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