AEP Plantations (AEP) Trading Update summary

Operational and financial performance

• Fresh fruit bunches (FFB) production fell 9% to 764,800mt due to replanting of aged palms in Bengkulu.

• FFB bought-in declined 9% to 733,150mt, reflecting lower yields from surrounding plantations and smallholders.

• Crude palm oil (CPO) production dropped 12% to 297,730mt, driven by reduced FFB supply.

• Average CPO ex-Rotterdam price rose 6% to $1,040/mt, with volatility and a closing price of $1,160/mt on 14 October 2024.

• Palm kernel price increased 34% to $459/mt, and ex-mill CPO price rose 5% to $768/mt.

Development and landholding

• New planting and replanting reached 1,488 ha, slightly up from 1,452 ha last year; plasma planting was 109 ha.

• Total landholding is 90,510 ha, with 68,501 ha planted and 9,200 ha still plantable.

• Environmental impact assessment for the eighth mill in Kalimantan has been submitted and is pending approval.

• Acquired remaining minority interests in two Indonesian subsidiaries for $400,000, now holding 100% ownership.

Outlook

• CPO prices expected to remain stable but face pressure from higher Indonesian production.

• Implementation of Indonesia's Biodiesel B40 mandate is anticipated to boost domestic consumption and support prices.