Palm oil greases Anglo-Eastern's rise in revenues

26th Apr 2011 12:11

Surging palm oil prices led to a sharp gain in 2010 revenue for Anglo-Eastern Plantations, which owns, operates and develops plantations in Indonesia and Malaysia.Revenue in 2010 rose 25% to $187.2m, due to a higher price for crude palm oil (CPO). The average CPO price for 2010 was $892 per metric ton (/mt), 31% higher than last year's $679/mt.The group's operating profit before biological asset (BA) adjustment was $64.9m, 10% more than in 2009. Earnings per share, before BA adjustment, increased 6% to 99.59 cents. Estates fresh fruit bunch (FFB) output for 2010 was 3% lower than the previous year, due to higher rainfall, and CPO production fell 4% to 204,600 metric tons.The group "continued to experience positive cash flow generation for 2010, enabling it to build up cash reserves and reduce its borrowings". At the end of last year the company's net cash position had reached $48.8m, compared to $36.8m at the end of 2009.The firm says it is cautiously optimistic regarding its outlook for 2011, given the higher CPO price seen in the first three months of the year, despite Chinese government measures to curb rising food prices and inflation, as well as other risk factors that may affect its operations in Indonesia. The board has proposed to declare a final dividend of 5.0 cents in respect of 2010.ab