Interim statement of the SIPEF group per 31 March 2020

April 23, 2020

• Favourable weather conditions led to an increase in total palm oil production of 6.6% in the first quarter;

• Palm oil production volumes for the first half are expected to continue to increase compared to the same period last year;

• The strong palm oil market at the start of the year suffered from declining demand from February onwards due to the effects of covid-19 and the accompanying low prices for gas oil;

• So far, covid-19 had no material direct negative financial impact on the operating activities of the SIPEF group;

• Up to now 41% of estimated palm oil production for the year 2020 was sold at USD 718 per tonne CIF Rotterdam, premiums included;

• Management is reasonably confident that the fundamentals of the palm oil markets will continue to be strong, but remains cautious given the unpredictable effects of covid-19 on the global economy;

• Taking into account the already realized sales of palm oil and based on the recent market prices, the group expects a turnaround into a profit position for 2020;

• Till now the cultivated hectares rose to 12 617 in Musi Rawas in South Sumatra in Indonesia, where expansion continued steadily.

 

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