Interim statement of the SIPEF group per 30 September 2021
HEADING FOR RECORD RESULTS FOR 2021
• Total group production of palm oil increased by 18.1% compared to the first nine months of last year, due to higher yields in favourable agronomic conditions.
• The Group expects a decline in growth rates in the fourth quarter. Nevertheless, the predicted growth in annual production of more than 10% will be largely exceeded, barring exceptional weather effects.
• In the first nine months, the palm oil market experienced a very stable environment with high prices, which are currently reaching peaks unprecedented in the last decade.
• SIPEF is convinced that the strong prices in the palm oil markets will continue in the last quarter of 2021. This trend may continue into early 2022.
• The easing of the system of government levies on palm oil exports in July 2021 increased the net profitability of Indonesia's palm oil operations.
• The annual results of the Group should be around USD 80 million, as more than 88% of the expected palm oil production has already been sold. This figure needs to be increased by the capital gain of USD 11 million on the sale of PT Melania (Indonesian tea estates and half of the rubber operations).
• The net financial debt position would be halved by year-end, due to the exceptionally favourable results and the sale of assets.
• The expansion in South Sumatra continues steadily. Today, 14 748 hectares have already been cultivated in Musi Rawas and 7 114 hectares have been replanted in Dendymarker.
• Since early September, SIPEF has been offering all employees and their families a free covid-19 vaccination in line with its ESG guidelines.
• SIPEF is starting a collaboration with the Zoological Society of London to advance the monitoring and the resilience of its biodiversity program in Indonesia (12 656 hectares of protected forest) and to contribute to the realization of the Sustainable Development Goal (SDG) 15, ‘Life on Land’