REG-New Britain Palm Oil 3rd Quarter ResultsReleased: 03/11/2009
com:20091103:RnsC8145B
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RNS Number : 8145B
New Britain Palm Oil Limited
03 November 2009
3 November 2009
New Britain Palm Oil Limited
("NBPOL" or the "Company")
2009 THIRD QUARTER REPORT AND TRADING UPDATE
New Britain Palm Oil Limited (LSE: NBPO), a large scale integrated industrial
producer of certified sustainable palm oil, announces its third quarter report
and trading update for the period from 1 January 2009 to 30 September 2009.
As a result of the Bursa Malaysia quarterly reporting requirements of the
Company's majority shareholder, Kulim Malaysia Berhad, NBPOL is required to
provide the following information in respect of the nine months ended 30
September 2009:
9 months ended 9 months ended
30September 2009 30 September 2008
Sales (USD (m)) 238.1 259.6
PBT (excluding IAS 41) (USD (m)) 61.9 86.3
FFB Produced - own plantations (Mt) 780,776 652,418
FFB Processed (Mt) 1,106,173 954,092
CPO Produced (Mt) 250,557 219,649
PKO Produced (Mt) 22,797 19,978
Average CPO price per Mt achieved (USD) $717 $950
Notes:
FFB: Fresh Fruit Bunch, the oil palm crop
CPO: Crude Palm Oil
PKO: Palm Kernel Oil
USD exchange rates as at 30 September 2009 and 30 September 2008 respectively
Nick Thompson, Chief Executive of New Britain Palm Oil Limited, stated:
"The first nine months of 2008 have been excellent for the Group, with record
production of 273,354 tonnes of crude palm and kernel oil; more than 14% ahead
of the same period last year but these results reflect lower world oil prices
compared to the same period last year.
A number of our estates will yield over 30 tonnes of fruit per hectare in 2009
which is encouraging progress towards our target of achieving this yield over
all of our estates. At the end of the third quarter our stocks of both crude and
refined oils awaiting shipment are 31,313 tonnes, although for accounting
purposes this is valued at cost. We expect that fruit and oil production will
continue to be in line with our 2009 targets.
Palm oil prices have traded in the range of US $530 To $825 per tonne. We have
averaged US$717 per tonne for crude palm oil in the first three quarters
reflecting previous forward sales. The majority of the fourth quarter's
production of crude palm oil has also been sold at an average price of US$694.
Oil extraction rates at the mills have not been as good as we would have liked
but are still at acceptable levels of 22.65% compared to 23.03% for the same
period last year.
We have made very good progress at our UK palm oil refinery in Liverpool and
production is expected to commence on time, in Spring 2010. As announced
previously, we have agreed a substantial off-take agreement from the refinery
with United Biscuits and are confident that the refinery will attract similar
end users who value the attributes of refined traceable palm oil that is
produced sustainably and certified accordingly.
During the third quarter, the West New Britain operations underwent a
surveillance audit for continued Roundtable on Sustainable Palm Oil (RSPO) and
ISO 14000 certification. This was the first combined audit of its type within
the industry. Work is also in progress at both Ramu Agri Industries Ltd (RAIL)
and at GPPOL in the Solomon Islands for RSPO accreditation. This would then give
the Group full RSPO certification should these sites be successful. The Company
remains committed to the RSPO principles and continues to improve its
performance in this regard.
Oil palm seed sales are showing good signs of recovery following a year of
challenging trading as a result of new plantings being curtailed, mainly in
Indonesia, due to the global financial crisis. Current sales year to date are
approximately US$2.4 million as against US$8 million for the corresponding
period last year. Seed stocks are high and with improving orders we are well
placed to satisfy increasing demand.
During the third quarter, an interim dividend of 14 US cents gross per share for
the financial year ending December 2009 was announced and is expected to be
paid, net of PNG withholding tax on the 16th November.
Generally costs are in line with expectations with fertiliser and agrochemical
costs returning to pre 2008 levels in most cases. Sugar production and sales at
RAIL have also been consistent with the previous year and the general increase
in global sugar pricing is encouraging for this business.
Looking forward to 2010, the Company has either forward sold or hedged 91,750
tonnes of oil at an average price of approximately $700 per tonne.
The board is pleased with the continued growth and improvement of the Company's
operations, in terms of plantation expansion, fruit production and refined
product potential. The board of NBPOL believes that the fundamentals of the
industry remain strong and that the prospects for NBPOL are encouraging,
particularly as it should benefit directly from the growing demand for the
highest quality, traceable and certified sustainable palm oil products. The
Company remains confident that its results for the year ending 31 December 2009
will be broadly in line with its expectations."
Enquiries
Kreab Gavin Anderson Tel: +44(0) 20 7074 1800
James Benjamin/ Anthony Hughes Email: nbpol@kreabgavinanderson.com
New Britain Palm Oil Limited Tel: +44(0) 20 7074 1800
Nick Thompson
Alan Chaytor
David Dann
Website: www.nbpol.com.pg
Notes to editors
NBPOL is a large scale integrated industrial producer of sustainable palm oil in
Australasia and is headquartered in Papua New Guinea ('PNG'). It has over 44,500
hectares of planted palm oil plantations and long term leases over 30,000
hectares of additional land, some of which will be converted to palm oil, six
oil mills, a refinery and a seed production and plant breeding facility. The
Company is quoted on both the Main Market of the London Stock Exchange and on
the Port Moresby Stock Exchange in PNG.
NBPOL is fully vertically integrated, producing its own seed (which it also
sells globally) and planting, cultivating and harvesting its own land and
processing and refining palm oil. It also contracts directly with its end
customers in the EU and arranges shipping of its products.
NBPOL has high regard for the importance of its sustainability credentials and
is active in proving its performance through its certification to ISO 14001 and
its close involvement and support of the Roundtable on Sustainable Palm Oil
('RSPO'). In September 2008, NBPOL announced that its operations in Papua New
Guinea were officially certified by the RSPO as conforming to RSPO Principles
and Criteria on sustainability.
This information is provided by RNS
The company news service from the London Stock Exchange
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