Half year results of the SIPEF group per 30 June 2026
Strong first-half performance reinforces the outlook for another record year
- Strong operational momentum continued in the first half of 2026, with crude palm oil (CPO) production increasing by 6.9% and banana production by 9.4%. Growth was recorded across both palm oil geographies, driven by the further maturation of the Group’s younger plantations.
- Indonesia recorded strong CPO production growth of 9.1%, reflecting the ongoing maturation of South Sumatra plantations, while production in Papua New Guinea increased by 2.8%.
- Favourable palm oil markets contributed positively to results, with SIPEF achieving an average ex-mill gate price of USD 1 007 per tonne (with 70% of its volume sold), compared with USD 965 per tonne in the first half of 2025.
- Higher production volumes combined with favourable prices translated into a strong operating result of KUSD 94 907, up 12.1% compared with the first half of 2025. The recurring net result, share of the Group, increased to USD 64.1 million. After a USD 4.1 million fair value adjustment related to PT Melania, the net result, share of the Group, amounted to USD 60.2 million.
- SIPEF further strengthened its balance sheet, with a positive free cash flow of USD 32.3 million increasing the net cash position to USD 124.5 million at the end of June.
- The Group remains committed to investing in future growth, through its USD 100–120 million 2026 investment programme focused on plantation development, including replanting, quality, sustainability, and further value-chain integration, and is expected to be fully funded from operating cash flow.
- Full-year CPO production is expected to be approximately 470 000 tonnes.
- Against a backdrop of higher palm oil and banana production and favourable palm oil prices, SIPEF expects its 2026 recurring result to surpass the record result achieved in 2025, while continuing to closely monitor weather conditions and any potential impact from El Niño.
- In Indonesia, Mukomuko oil palm mill's certified supply base was strengthened through the Roundtable on Sustainable Palm Oil (RSPO) certification of Sei Jerinjing estate, increasing the volume of certified crop.
- SIPEF has advanced sustainable growth in Papua New Guinea with the approved RSPO’s New Planting Procedure (NPP) for Hargy Oil Palms’ smallholders in Papua New Guinea, creating the opportunity for a potential expansion area by up to approximately 8 000 hectares.