Interim statement of the SIPEF group per 30 September 2024
Confirmation of a Solid results for 2024
-
A general cyclical decline in palm oil production, both in Indonesia and in Papua New Guinea, as well as the effects of the volcanic eruption in 2023 in Papua New Guinea, led to a temporary 9.0% decrease in palm oil production of the SIPEF group during the first nine months of the year.
-
In Indonesia, a slight 0.2% decline in own Fresh Fruit Bunch production compared to 2023 was noted. Nevertheless, there are production increases of 3.0% in the mineral soil estates of North Sumatra and 10.5% in South Sumatra.
-
In Papua New Guinea, while overall production of palm oil decreased by 21.1% due to the 2023 volcanic eruption, recovery efforts are now complete, with a rebound in production expected in 2025.
-
Banana production continued to grow and increased with 26.7% compared to 2023. This increase stems from the completion of 485 hectares added in strategic sites Lumen and Akoudié across Côte d’Ivoire.
-
Demand for palm oil remained strong in the third quarter with price levels above USD 1 000 per tonne CIF Rotterdam, going as far up as USD 1 100 per tonne CIF Rotterdam.
-
82.0% of the projected palm oil volumes were sold at an average ex-mill gate price of USD 854 per tonne.
-
The projected Group recurring annual result is expected to be between USD 60 and 70 million.
-
The Group is heading for a limited net financial debt at year end 2024, comparable to the net financial debt at the end of 2023.
-
The cash flow of 2024 will support the dividend paid in the second semester of 2024, as well as the extensive capex programme nearing USD 100 million including the completion of the construction of the Agro Muara Rupit mill in South Sumatra in 2024.
-
Prospects are positive with a sustained strong palm oil market, an increased number of maturing hectares in Indonesia and a rebound in production expected in Papua New Guinea in 2025 for the areas impacted by the 2023 volcanic eruption.
-
The SIPEF subsidiary in Côte d’Ivoire supports industry efforts focussed on living wage and shared responsibility in the Ivorian banana sector.
-
SIPEF will launch its innovative supply chain traceability tool by end of October, strengthening its commitment to compliance with the EU Deforestation Regulation (EUDR).