Interim statement of the SIPEF group per 31 March 2026
SIPEF off to a strong start, with outlook broadly aligned with last year’s record performance
- SIPEF has had a strong start to the year, with palm oil production increasing by 7.3% at the end of March, driven by solid performance in both Indonesia and Papua New Guinea, providing a sound foundation for the remainder of the year. Banana production increased by 2.9% compared to last year.
- Palm oil markets remain favourable, with prices at elevated levels. Benchmark crude palm oil (CPO) futures on MDEX increased from around USD 990 per tonne at the start of the quarter to USD 1 069 per tonne by March, supported by geopolitical factors and changing biodiesel mandates.
- Over the year, palm oil production is expected to be around 470 000 tonnes, in line with the Group’s earlier guidance, subject to weather conditions. Benefiting from favourable palm oil markets, SIPEF has secured 44% (compared to 38% in 2025) of its projected volumes at an average ex-mill gate price of USD 1 046 per tonne (compared to USD 1 030 per tonne in 2025).
- The Group expects its recurrent net profit (Group share) in 2026 to be broadly in line with the record recurrent results of 2025, supported by solid production performance and a favourable pricing environment, despite continued pressure from rising input costs related to fertilisers and energy.
- Papua New Guinea continues its recovery from the volcanic eruption in 2023, with the Group’s own estates expected to perform well.
- A coalition of partners launched a sustainable landscape development initiative in Mukomuko, Indonesia.
- SIPEF and Borneo Futures, a Brunei based scientific consultancy company, strengthened biodiversity monitoring through a community-driven citizen science programme in Indonesia.