Half year results of the SIPEF group per 30 June 2025
SIPEF on track for a record year
- SIPEF recorded a total Crude Palm Oil (CPO) production of 208 060 tonnes for the first half of 2025, reflecting a 19.1% increase compared to the same period in 2024. This growth was supported by an increase in Fresh Fruit Bunches (FFB) and improved oil extraction rates across both geographies.
- In Indonesia, CPO volumes are up 21.1%, and in Papua New Guinea 13.9% from last year, supported by favourable weather and the recovery after the volcanic eruption in November 2023.
- Banana production increased with 3.4% contributed by the maturing area of the recently developed areas.
- Palm oil markets remain favourable from a historical perspective and prices hovered around USD 960 per tonne on the Malaysian MDEX.
- In the first half of 2025, SIPEF achieved an average CPO price of USD 965 per tonne ex-mill gate, up 15.3% from last year. Prices were strongest in Papua New Guinea at USD 1 129 per tonne, while Indonesia averaged USD 864 per tonne. Palm Kernel (PK) prices also recovered sharply to USD 754 per tonne, a 63.4% increase from the first half of 2024.
- The operating result almost doubled, reaching KUSD 84 641 by end June 2025, compared to KUSD 44 001 in the first half of 2024. This reflects strong underlying performance in the Group’s core activities.
- The result for the period, share of the Group, rose to KUSD 57 718, a significant increase from KUSD 25 029 in the same period last year.
- The Group maintained a strong financial position, with total equity increasing to KUSD 973 679 and a net cash position of KUSD 19 933.
- The Group remains on track to achieve its forecasted CPO production of 430 000 tonnes, provided that growing conditions continue to be supportive.
- In South Sumatra, 24 557 hectares of the 30 418 hectares planted are now classified as mature and contributing to production, reflecting the steady development of the plantation base.
- To date, 73% (last year 64%) of the budgeted palm oil production has been sold at an average price of USD 963 per tonne ex-mill gate (last year USD 857 per tonne ex-mill gate). Together with the prospect of continued favourable market prices for palm oil, the Group’s recurring annual results will be significantly higher than last year and is on track to deliver a new record year.
- The Group is expected to head for a positive net financial position at year end 2025.
- Continued progress on the PT Melania divestment, with amended terms signed to reaffirm the transaction.
The Group continues to execute its capex programme in a disciplined and strategic manner, progressing with the implementation of washing plants and biogas/Bio-CNG initiatives in Indonesia, while maintaining a positive cash flow. - Hargy Oil Palms Ltd welcomes RSPO CEO for On-the-Ground Engagement in Papua New Guinea.
- SIPEF supported the RSPO certification of over 300 independent smallholders in Indonesia, now eligible to be integrated into SIPEF’s fully certified and traceable supply chain.
- Plantations J. Eglin hosts Fairtrade leadership and pioneers Human Rights training to advance responsible business practices in West Africa.