MP Evans hikes dividend amid high palm oil prices

12th Sep 2022 11:51

(Sharecast News) - Indonesian palm oil producer MP Evans reported a 4% increase in group crop in its first half on Monday, to 430,400 tonnes, while it maintained total crude palm oil production at 160,800 tonnes, compared to 161,400 tonnes a year ago.

The AIM-traded firm said mill gate crude palm oil prices were 43% higher year-on-year for the six months ended 30 June, at $1,035 per tonne, while its sustainability premia was ahead 74% at $3.3m.

Its cost of group palm product rose 27% to $425 per tonne, while operating profit was 49% firmer at $61.7m.

Earnings per share rose 65% to 63.3p, while the board hiked the interim dividend by 25% to 12.5p per share.

The company reported a net cash surplus of $13.5m at year-end, swinging from net debt of $67.7m.

"The group has delivered an excellent set of results for the first half of 2022, supported by the high crude palm oil price environment, but once again demonstrating the benefits of the group's commitment to long-term responsible management and development of its estates," said executive chairman Peter Hadsley-Chaplin.

"We are delighted to propose an increase in the interim dividend to 12.5p per share, in line with our progressive dividend policy."

At 1206 BST, shares in MP Evans Group were down 1.72% at 798p.

Reporting by Josh White at Sharecast.com.