Highlights
· 26% increase in crop as young plantings continue to mature
· 56% increase in production of crude palm oil
· Operating profit for the period more than tripled to US$18 million (2016 US$5 million)
· Profit of US$68 million following sale of Agro Muko joint venture
· Average CPO price of US$735 per tonne, 10% higher than first half 2016
· Oil extraction at good levels despite flooding in Kalimantan
· 1,370 hectares of new planting, including smallholder areas
· Interim dividend of 5.00 pence per share (2016 – 2.25 pence per share)
Commenting on the results, the chairman of M.P. Evans, Peter Hadsley-Chaplin, said: –
“Operating profit tripled in the first half of 2017 as crops surged and palm-oil prices strengthened. In addition, a substantial one-off gain arose following the sale of the Agro Muko joint venture. I am delighted that the hectarage sold will be more than replaced through the recently announced agreement to acquire a new 10,000-hectare plantation in East Kalimantan. This will help sustain the significant expected increase in crops, and hence cash flows, that underpin the board's commitment to pay enhanced dividends.”