Anglo-Eastern Plantations Faces Profit Drop in First Half of Year
In the first six months of the year, Anglo-Eastern Plantations saw a decline in pretax profit due to the weaker prices of crude palm oil. However, the company has announced plans to provide more returns to its shareholders through an interim dividend and a share buyback program.
The London-listed producer, known for its palm oil and rubber production in Indonesia and Malaysia, revealed that pretax profit dropped to $32.5 million compared to $89.5 million in the same period last year. Furthermore, revenue fell from $249.2 million to $173.45 million.
This significant decline is attributed to crude palm oil prices, which have averaged 40% lower at $991 per metric ton compared to the previous year. In late May, the price dropped even further to $860 per ton.
The company explained that the weak average price reflects an increase in inventory of soft oils during a global demand slowdown. However, it anticipates an improvement in prices during the second half of the year.
For the first time in several years, Anglo-Eastern Plantations has declared an interim dividend of 15 cents. Additionally, a share buyback program worth up to 3.2 million pounds ($4.1 million) has been initiated.
