Sipef (SIP) Q1 2025 earnings summary

Executive summary

• Palm oil production rose 17.9% year-over-year in Q1 2025, reaching 94,024 tonnes, with improved oil extraction rates in both Papua New Guinea (+9.2%) and Indonesia (+1.7%).

• Banana production increased 4.4% year-over-year, with historic sites offsetting weather impacts.

• The group expects recurrent results for 2025 to exceed 2024, supported by higher volumes, improved pricing, and cost control.

Financial highlights

• Average crude palm oil (CPO) selling price was USD 994/tonne, up USD 157/tonne from Q1 2024.

• 38% of projected palm oil volumes sold at an average ex-mill gate price of USD 1,030/tonne, with Papua New Guinea volumes achieving USD 1,121/tonne.

• Cash flows are projected to fully cover investment programs, working capital, and dividends.

Outlook and guidance

• Full-year CPO production guidance maintained at approximately 430,000 tonnes.

• Continued stable banana production expected, with mature and new plantations contributing.

• Market outlook for palm oil is balanced, with supportive fundamentals but external uncertainties such as trade policy and weather.