The National – Tuesday, December 7, 2010
NEW Britain Palm Oil (NBPO) has this year generated US$355.3 million in sales revenue for the first nine months of this year to September.
Profit before tax (PBT) for this period was US$87.9 million excluding the revaluation of biological assets, while expecting an end of year PBT at around US$117 million, excluding the revaluation of biological assets.
The PNG-based company also raised a total of 22% ahead of the previous corresponding period with 335,086 tonnes of crude palm and kernel oil in total productions by September.
However, total oil production is expected to reach 435,000 tonnes by end of the year based on increased hectares of palm in harvest, higher crude oil palm extraction rate and strong demand for refined oil from Europe.
It is expected that total revenue for FY2010 to reach about US$450 million.
NBO forward sold approximately 53,800 tonnes of all oils into the fourth quarter at an average price of US$863 per tonne, expecting a balance of oil production to be sold at an average price of US$880 per tonne to Dec 31.
NBPO also had a significant production average when it acquired 80% of the Kula Palm Oil Ltd (KPOL), formerly CTP PNG Ltd, last April, contributing 236,639 tonnes of fruit bunches.
It is believed that KPOL is operating below its production capacity and should take at least two years to bring its crop yield and production efficiencies into line with current extraction rates.