Half year results of the SIPEF group per 30 June 2020

August 13, 2020

  • Favourable weather conditions led to a 5.64% increase in the total palm oil production during the first half of the year.

  • The production volumes of palm oil for the second semester should continue to increase compared to the same period last year.

  • In Hargy Oil Palms Ltd the recovery from the damage caused by the 3 volcanic eruptions last year is progressing well. The loss of production for 2020 is estimated at approximately 25 000 tonnes of palm oil.

  • So far, Covid-19 had no significant direct negative financial impact on the operational activities of the SIPEF group, except for the effect of a sudden sharp drop in the price of palm oil since mid-February. In the meantime, the price has recovered significantly.

  • The gross profit increased from KUSD 14 330 at the end of June 2019 to KUSD 20 023 at the end of June 2020.

  • The net result, share of the Group, amounted to KUSD -712, compared to KUSD -5 205 on 30 June 2019.

  • To date, SIPEF has sold 76% of the expected palm oil production for 2020 at an average price of USD 692 per tonne CIF Rotterdam, premiums included.

  • Taking into account the sales already realised, the recent market prices and the production outlook for palm oil, the Group expects a return to a recurring profit position for the year 2020.

  • At the end of June, the cultivated hectares increased to 12 958 in Musi Rawas in South Sumatra in Indonesia, where the expansion continued steadily. As a RSPO-compliant producer, SIPEF continues to supply certified segregated sustainable palm oil to the European and Asian markets.

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