Annual results of the SIPEF group per 31 December 2017

February 15, 2018

  • Annual palm oil production rose by 11.2% compared with a rather weak production year in 2016.
  • There was a rising trend in market prices for palm oil in the first half of the year and they remained relatively constant in the second half of the year.
  • Higher sales prices for palm oil, lower unit cost prices and the effect of the full consolidation of PT Agro Muko resulted in a gross profit of KUSD 120 474, a rise of KUSD 46 682 or 63.3%.
  • The net result, share of the group, before the remeasurement gain of PT Agro Muko was KUSD 64 481, a rise of 61.7% compared with 2016.
  • The recent acquisitions in Agro Muko and Dendymarker and the expansion in Musi Rawas increased the planted areas (share of the group) in 2017 by 17 985 hectares (30.4%) to a total of 71 865 planted hectares.
  • The acquisition of a controlling interest in Agro Muko resulted in an IFRS gain of KUSD 75 182, which means the net IFRS result, share of the group, in 2017 was KUSD 139 663.
  • In May, the company completed a most successful capital increase with preferential right for the existing shareholders of KUSD 97 122.
  • 41% of the expected palm oil volumes for 2018 have already been sold at an average price of USD 741 per tonne CIF Rotterdam, premiums included, while the current market prices are lower.
  • In line with the 30% pay-out ratio of previous years, the board of directors proposes to approve a gross dividend of EUR 1.60 per share (+28% on last year), on an 18.2% increased number of shares issued and payable on 4 July 2018.

SIPEF - The connection to the world of sustainable tropical agriculture