Company Announcements

17 April 2020

Anglo-Eastern Plantations PLC

("AEP" or the "Company")

Trading Statement

Anglo-Eastern Plantations, a major producer of palm oil and some rubber across Indonesia and Malaysia, today announces a trading update in respect of the first quarter ended 31 March 2020.

Announcement

With the current lockdown in the United Kingdom and similar measures in Malaysia known as Movement Control Order ("MCO"), it has not been logistically possible for the Board members, who are all currently in Malaysia, to finalise the accounts and the annual report for the year ended 31 December 2019 in a similar timeframe to previous years. In line with the announcement by the Financial Conduct Authority of a temporary relief for listed companies in the UK, the Board has decided to delay the announcement of 2019 audited results to around mid May, which would enable the Company to give the required notice to have its AGM by the end of June 2020. The  Board is hopeful that the MCO will end as scheduled on 28 April 2020, lifting restriction of movements, which would then allow the Board to meet in person.

Although Malaysia and some parts of Indonesia are in lockdown and our administration staff are working from home to comply with the Stay At Home measures, our plantations and mills are operating close to normal. To date we have had no reports of Covid-19 infections in any of our plantations, mills and offices.


Operational and financial performance

For the first three months ended 31 March 2020, our own production of fresh fruit bunches ("FFB") was 246,600mt, an increase of 3% compared to the same period in 2019 (3M19: 238,900mt). Crop production in Bengkulu estates recovered as rainfall normalised. FFB bought-in was however lower at 183,200mt (3M19: 196,400mt), a decrease of 7% in line with a lower crop trend in North Sumatera and Riau. In addition, the Group faced intense competition from new mills. The Crude Palm Oil ("CPO") produced for the period was 88,600mt, marginally higher than the corresponding period in 2019 (3M19: 88,100mt).

The CPO price ex-Rotterdam averaged $731/mt for the first three months to 31 March 2020. This represents an increase of 36% from the average price of $538/mt recorded in the first quarter of 2019 but was below $878/mt at the start of the year.

The Group's balance sheet remains strong. The Company's Long Term Development Loans totalled $5.5m as at 31 March 2020 (31 March 2019: $18.8m). The Group has net cash of $77.3m as at 31 March 2020.

Development

AEP has plantations across Indonesia and Malaysia, amounting to some 128,200 hectares, of which approximately 71,960 hectares (including Plasma) are planted. The Group's new planting for the three months ended 31 March 2020 totalled 548 hectares (including Plasma).

The fourth biogas plant in North Sumatera has been completed and the operation has commenced. The power generated is currently being utilised internally by the mill while it formalises the certification and inspection required by local authority before it can upload the electricity onto the national grid. This may take up to the end of the second quarter.

The earthworks for the seventh mill in North Sumatera had been completed. Civil works are expected to commence by the third quarter of this year. The project is earmarked for completion by 2021.

Outlook

The CPO price ex-Rotterdam started the year at $878/mt. Since then it has trended downwards and closed at $542/mt on 15 April 2020. Palm oil prices remain volatile as demand is affected by the economic lockdown among the importing countries as they battled with the Covid-19 pandemic. There is also concern over the palm biodiesel program in Indonesia as it loses its appeal in view of the subdued crude oil prices.

Note: The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014.

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