NBPOL hit by low sales

By GYNNIE KERO
NEW Britain Palm Oil Ltd (NBPOL) has experienced lower sales for the first nine months due to weather impacted and kina appreciation against the US dollars.
The company in its third quarterly report, said kina’s appreciation of 16% has increased labour and overhead costs.
“Falling prices due to overhang of palm oil stock and weather issues further worsened the problem,” the company added.
However, the kina-US dollar exchange rate has been relatively stable in recent months, having started the period at US$0.4690 and currently stands at US$0.4815.
Group chief executive Nick Thompson said NBPOL posted net sales of US$528 million compared with US$593.7 million for the same period of last year.
He added that the first nine months had been challenging after oil volumes went down.
“Weather impacts and local currency’s appreciation earlier in the year have seen profitability impacted by both rising costs and falling crude palm oil (CPO) and palm kernel oil (PKO) prices.  
For the first nine months, the group had processed 1,74 5,672 tonnes of fresh fruit bunches (FFB), 5.9% lower than the same period last year, including 528,308 tonnes from smallholders.
As a result of lower FFB production and lower extraction rates, 388,187 tonnes of CPO was produced, 7.9% lower than the same period last year.
Crude palm oil (CPO) extraction rates averaged 22.24%, compared with the 22.73% last year.
Palm kernel oil (PKO) production was 27,179 tonnes, 10.6% lower than the same period last year.
The company has hopes for good progress next year because freight and fertiliser costs are expected to go down.
NBPOL has re-organised its management structure to cope with the peak cropping period in the first-half of next year.
“Good progress has been made to identify and deliver operational efficiencies and cost saving initiatives across the group in 2013 and beyond.
“Freight and fertiliser costs are expected to be lower in 2013 than in 2012.
“Management structures have been streamlined so that we are in a stronger position to cope more effectively with our peak cropping period in the first half of 2013.”