Annual results of the SIPEF group per 31 December 2020

February 11, 2021

  • The Group's total palm oil production grew by 5.4% compared with 2019.
  • All the Group’s production units have remained operational, without loss of volume or yield, despite covid-19.
  • Palm oil production in Indonesia was almost stable (+0.7%): in North Sumatra, recovery from last year's drought remained limited, while in the expansion regions, production growth continued.
  • The plantations affected by last year's volcanic eruptions in Hargy Oil Palms in Papua New Guinea recovered, so that HOPL's total palm oil production increased by 14.9%.
  • The net result, share of the Group, after tax, amounted to KUSD 14 122, compared with a loss of KUSD -8 004 last year. This turnaround was mainly due to the strong recovery of palm oil prices during the second semester.
  • The investment programs related to the expansion in South Sumatra in Indonesia, continued steadily in 2020. Cultivated hectares in Musi Rawas grew by 1 811 hectares to a total area of 14 014 hectares. 5 207 hectares were also replanted in the nearby Dendymarker plantation.
  • Total capital expenditures, which were temporarily delayed by covid-19 related logistical problems, amounted to KUSD 51 763, while net debt decreased to KUSD 151 165 (2019: 164 623).
  • The excessive government levies on Indonesian palm oil supplies are limiting the profit potential for the Group.
  • Due to the strong market and good production expectations better results are to be expected in 2021.
  • In line with the 30% pay-out ratio of previous years, the board of directors proposes to approve a gross dividend of EUR 0.35 per share, payable on July 7, 2021.
  • As an RSPO compliant producer, SIPEF continues to supply certified "segregated" sustainable palm oil to the European and Asian markets.

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