Half year results of the SIPEF group per 30 June 2019

August 14, 2019

  • Lower than expected availability of ripe fruit, resulting in a 7.5% fall in total palm oil production in the first half of 2019 compared with the same period last year.

  • Notwithstanding an uptick compared with the last quarter of 2018, the palm oil price remained at a very low level during the first semester, with an average price on the world market of USD 528 CIF Rotterdam.

  • Gross profit fell from KUSD 46 596 in June 2018 to KUSD 14 330 (-69.2%) in June 2019.

  • Net earnings, share of the Group, amounted to KUSD -5 205.

  • The expansion of the activities in South Sumatra continued steadily, in spite of the limited cash flow from operating activities.

  • The Group had to deal with volcanic eruptions in Papua New Guinea in late June and early August.

  • The results of the Group for the second half of the year could approximate those of the first half of the year, taking account of the palm oil sales trend, the expected higher production volumes in Indonesia and the impact of the volcanic eruptions in Papua New Guinea.

  • As an RSPO-compliant producer, SIPEF continues to supply certified segregated sustainable palm oil to the European and Asian markets.

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