Sipef (SIP) Q3 2026 earnings summary

Executive summary

• Q3 CPO production rose 16.5% YoY to 136,927 tonnes; 9M production increased 10.4% to 359,357 tonnes, while banana production grew 8.9% to 42,059 tonnes.

• Favourable palm oil prices and production growth support a projected record 2026 recurring result of USD 140–150 million.

Financial highlights

• 86% of budgeted 2026 palm oil volumes contracted at an average ex-mill gate price of USD 997/tonne, versus 84% at USD 961/tonne over the same period in 2025.

• Unit production costs fell 1.6% YoY in 9M 2026 despite higher input costs and a growing share of structurally higher-cost production.

• Strong operating cash flow is expected to fund the investment programme and dividend distribution.

Outlook and guidance

• FY 2026 CPO production is forecast at ~470,000 tonnes, with potential upside subject to Q4 weather and operating conditions.

• Recurring result, share of the Group, is expected at USD 140–150 million; outcomes depend on market prices, production, Indonesian export charges and costs.

• Unit production costs are expected to remain broadly stable toward year-end; banana production is expected to maintain positive YoY development.

• The 2027 palm oil outlook remains supported by biodiesel demand and potential El Niño-related supply constraints, though timing and production impacts remain uncertain.