Interim statement of the SIPEF group per 30 September 2023

October 19, 2023

Confirmation of a satisfying result for 2023


  • A general cyclical decline in palm oil production, both in Indonesia and in Papua New Guinea, caused a temporary drop in production with 3.4% over the first nine months of the year.
  • The banana production was 121.4% compared to the first nine months of the previous year, and the increase is entirely related to the expansion of 400 hectares in two new production sites in Ivory Coast.
  • Palm oil markets continued to remain favourable from a historical perspective and prices hovered between USD 900 and USD 1 000 per tonne for most of the third quarter of 2023.
  • The expansion in South Sumatra has continued steadily, with currently 28 408 hectares newly planted or replanted, of which 36.1% are still immature. The construction of the second palm oil mill will be finalised before mid-year 2024.
  • 82% of the projected palm oil volumes were sold at an average ex-mill gate price of USD 855 per tonne. Prospects are positive with annual production volumes equal to last year and sustained strong palm oil markets.
  • The projected Group’s recurring annual result is expected to be in the upper end of a range of USD 65 to 75 million.
  • The group is heading for a limited net financial debt at year end 2023. In the second semester, SIPEF paid its record dividend and substantial tax payments related to last year’s profits. The cash flow of 2023 will support the extensive capex program nearing USD 100 mio.
  • The SIPEF subsidiary in Papua New Guinea completed an integrated assessment on HCV and HCA in a wide area surrounding its operations, identifying large areas for conservation as well as for potential new development in and around existing smallholder estates, enabling widespread community engagement.

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