Half year results of the SIPEF group per 30 June 2024
Half-yearly report confirms the prospect of another strong performance year
- Palm oil production in Indonesia at 30 June increased with 4.9% compared to the first half of 2023.
- Palm estates in Papua New Guinea recover well from the damage caused by the volcanic eruption in November 2023. However, palm oil production of the first half-year was down by more than 19% on the same period last year.
- As a result, the SIPEF group’s palm oil production at the end of June 2024 decreased by 5.7% compared to the first half of last year.
- The half-yearly increase in banana production in Côte d’Ivoire on the first semester of 2023 reached 30.6%, thanks to the maturing newly developed expansion areas.
- Palm oil markets continued to remain favourable from a historical perspective and prices hovered around USD 1 000 CIF Rotterdam per tonne for most of the first semester.
- The 2024 half-yearly result of KUSD 25 029 (share of the Group) is satisfactory but slightly lower than the figures of the first semester of 2023 (KUSD 31 216).
- The Group’s financial position remained extremely healthy with a total equity of KUSD 892 967 and a limited net financial position of KUSD -14 530.
- The expansion in South Sumatra continued steadily and has already resulted in more than 29 000 newly planted hectares. The construction of the second palm oil mill was finalised by mid-year 2024.
- To date, 64% of the budgeted palm oil production has been sold at an average ex-mill gate price of USD 857 per tonne. Prospects are positive with increasing annual production volumes in Indonesia and sustained strong palm oil markets.
- The Group’s recurring annual results will be slightly lower than last year’s profit of USD 72.7 million due to the effects of the PNG volcanic eruption.
- The generated cash flow will support the extensive annual investment program of more than USD 100 million, including investments in innovative techniques for the production of high quality, low contaminant oils, exceeding USD 10 million.
- The Group is expected to head for a limited net financial debt position at year end 2024, in line with the USD -31.4 million at year-end 2023.
- SIPEF has strengthened commitment to ethical business practices with revised Group-level Policies.
- PT Citra Sawit Mandiri completed its first audit for RSPO certification, an achievement that will add 1 568 certified hectares to SIPEF’s supply base.