Half year results of the SIPEF group per 30 June 2022
· The recurring operating result more than doubled, from KUSD 50 129 end of June 2021 to KUSD 104 647 by the end of the first semester in 2022.
· The net result, share of the Group, amounted to KUSD 63 922, against KUSD 43 519 as per end of June 2021 which included a capital gain on the sale of PT Melania.
· Increasing (+5.4%) palm oil production in the second quarter largely absorbed the drop in volume in the first three months of the year.
· The Group realised net selling prices largely above the level of the first six months of 2021.
· The high prices for palm oil, up to USD 1 750 per tonne, traded on the international markets, did not fully benefit the Indonesian producers due to a series of protection measures issued by the Indonesian Government. Moreover, a general commodity price drop in June affected also palm oil, closing the first semester at USD 1 250 CIF Rotterdam per tonne.
· The expansion in South Sumatra continued steadily: already 15 425 hectares have been cultivated and the replanting of the Dendymarker plantations acquired in 2017 is largely completed.
· With strong palm oil production in the third quarter, the Group expects that the forecast production increase of more than 4% for 2022 will be achieved, barring exceptional weather effects.
· Once the Indonesian palm oil market is back on its feet to resume the number one position as vegetable oil exporter, the palm oil market will be well positioned again for the remainder of the year.
· With 65% of the budgeted palm oil production sold and the prospect of continued favourable market prices for palm oil, the Group’s recurring annual results should exceed the record number of USD 100 million, apart from unfavourable export tax/levy changes imposed by the Indonesian Government.
· Notwithstanding a high capital expenditure program, the Company is trending to a zero net financial debt position.
· In the second quarter of 2022, SIPEF continued its efforts to increase transparency in its sustainability reporting focusing on improvement of its Environmental, Social and Governance (ESG) reporting and strategy.
· Greenhouse gas (GHG) emissions reduction remained another key priority for SIPEF in the second and third quarters of 2022. The Group is working towards the assurance of its carbon footprint calculations in accordance with the ISO 14064 standard, setting an accurate baseline for a mitigation strategy currently under development.
· SIPEF has continued to act as a socially responsible employer and has provided, at its own cost, covid-19 vaccinations and boosters to all employees and their dependents in Indonesia, Ivory Coast and Papua New Guinea. As a result, over 20 000 employees and their dependents have been successfully double-vaccinated.