M. P. Evans Group PLC AGM Statement (6033H)
09 June 2017 - 9:00PM
UK Regulatory
TIDMMPE
RNS Number : 6033H
M. P. Evans Group PLC
09 June 2017
M.P. EVANS GROUP PLC
("Group" or "M.P. Evans")
ANNUAL GENERAL MEETING
The annual general meeting of M.P.Evans Group PLC is being held
in London today. The following statement, presenting an update on
trading conditions and progress on the Group's activities since the
publication of the annual report in April, is being given at the
meeting by the chairman, Peter Hadsley-Chaplin:-
Crops
The crop of oil-palm fresh fruit bunches ("f.f.b.") for the five
months ended 31 May 2017 was 180,000 tonnes from estates controlled
by the Group, some 26% higher than the 142,400 tonnes recorded for
the same period in 2016. This partly reflects a widespread recovery
in production throughout South East Asia following the acute "El
Nino" in 2015-16, but also results from the young 7 1/2 year
average age of the Group's palms whose yields are increasing as
they mature. Crops from the smallholder co-operatives associated
with the Group's new projects increased by 28% to 43,800 tonnes.
Following the El Niño, all of the Group's areas have experienced
higher rainfall. In Kalimantan, higher rainfall in May has led to
some flooding in areas of the project closest to the Mahakam river,
disrupting access to some fields and between different areas on the
project. The water level is no longer rising and it is anticipated
that normal working will be resumed as the drier months of the year
now begin.
The growth in crop on the Group's estates has been particularly
pronounced on Bangka, where crops increased by 80% compared with
last year. Crop increases in Kalimantan and Sumatra were 22% and
13% respectively. The Group's 38% associate, PT Kerasaan Indonesia,
reported crops some 21% higher than for the first five months of
2016.
Production
The Group produced 60,100 tonnes of crude palm oil ("CPO")
during the first five months of 2017 compared with 37,900 tonnes
for the equivalent period in 2016, showing the benefit of its new
Bangka mill. Extraction rates continue at good levels: 24.8% in
Kalimantan; 23.2% in Bangka and 23.3% in Pangkatan. The rate in
Kalimantan may experience a dip during the very wet weather
referred to earlier. Production was increased, notably in Bangka,
by the successful purchase of 43,500 tonnes of f.f.b. from third
parties (2016 - 7,900 tonnes) in addition to those produced on the
Group's own estates and associated smallholder co-operatives. In
May, the Group began selling electricity surplus to use on the
estate to the Indonesian state energy company in Bangka; this power
is generated by burning methane captured in a biogas facility
integrated with the Group's new mill.
Prices
The average price of CPO (c.i.f. Rotterdam) for the first five
months of the year was US$732 per tonne. This was US$67 per tonne
higher than the US$665 per tonne during the equivalent period in
2016. In the period to the end of May 2017, the Group realised an
average price at mill gate of US$606 per tonne (2016 US$555 per
tonne). Prices for palm kernels have also strengthened, averaging
US$503 per tonne (mill gate): some 21% higher than the US$414 per
tonne in the year to May 2016. The expected recovery in South East
Asian production may exert some downward pressure on prices during
the second half of the year, notwithstanding unusually low stock
levels of the world's major vegetable oils and hence the likelihood
there will be some stock rebuilding.
New planting
In Musi Rawas, 900 hectares were planted in the first five
months of the year, bringing the total planted to 3,600 hectares in
respect of Group and smallholder areas combined. Planting is
ongoing, and land compensation has already been settled over a
further 2,100 hectares. In Kalimantan, some replacement of
newly-planted palms may be necessary in the areas affected by
flooding. There was also new planting of 50 hectares on the Group's
projects in Bangka and Kalimantan as these projects approach
completion.
Strategy
Following the disposal of its Australian cattle operations, the
Group is now focussed on production of palm oil in Indonesia and is
in control of substantially all its assets. The Group completed the
sale of its share in the Agro Muko joint venture in March and so
paid a special dividend of 10.00 pence per share to shareholders on
12 April. Including this special dividend, the board is committed
to pay dividends of at least 25.00 pence per share in respect of
2017, following the 20.00 pence per share in respect of 2016, which
included a special dividend of 5.00 pence per share.
The board is at an advanced stage of negotiation to acquire a
developed-oil palm project of at least 7,000 hectares to replace
the area sold in the disposal of Agro Muko. It also continues to
negotiate for smaller areas in the vicinity of its Kalimantan
project. These are exciting prospects that give grounds for
confidence that your board will be able to expand plantation
hectarage and deliver crop growth that are the foundations for
improving results, and dividends, to shareholders.
9 June 2017
Enquiries:
M.P. Evans Group PLC Telephone: 01892 516333
Peter Hadsley-Chaplin
- chairman
Tristan Price - chief
executive
Matthew Coulson - finance
director
Peel Hunt LLP Telephone: 020 7418
8900
Dan Webster
Adrian Trimmings
George Sellar
Hudson Sandler Telephone: 020 7796
4133
Charlie Jack
Bertie Berger
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGMFPMRTMBTMBMR
(END) Dow Jones Newswires
June 09, 2017 07:00 ET (11:00 GMT)
M.p. Evans (LSE:MPE)
Historical Stock Chart
From Apr 2024 to May 2024
M.p. Evans (LSE:MPE)
Historical Stock Chart
From May 2023 to May 2024