NBPOL posts high yield

 LIVERPOOL: New Britain Palm Oil revealed sharp increases in turnover and pre-tax profits for the nine months to Sept 30.

It reported sales of £320m (K1022m) compared with £274.4m (K876.50m), and profits before tax of £55.9m (K178.55m), against £11.8m (K37.69m) a year ago.

Chief executive officer Nick Thompson said: “In the first nine months of 2014, the group processed 1,802,157 tonnes of Fresh Fruit Bunches (FFB), some 11.2% higher than the same period last year, including 506,397 tonnes from smallholders (2013: 463,750 tonnes).

“While allowing for the usual seasonal drop in volumes during the third quarter, we have seen a strong recovery in available FFB for harvest with increases in FFB production of 8% and 7.6% respectively from our estates and smallholders versus the third quarter of 2013.

“Crude Palm Oil (CPO) extraction rates during the period averaged 22.23%, as compared to the corresponding period in 2013 of 21.98%.

“As a result of higher FFB production and higher extraction rates, 400,672 tonnes of CPO was produced, some 12.5% higher than the same period last year. Palm Kernel Oil (PKO) production was 40,624 tonnes, some 14.7% higher than the same period last year.”

He said the group shipped 448,106 tonnes of CPO, PKO and refined oils during the first nine months of 2014 at an average price of £618.47 (K1,975.54)/tonne, compared with 417,702 tonnes in the first nine months of 2013 at an average price of £575.20 (K1,837.33)/tonne.

He said the greater volumes shipped at higher average selling prices, together with a lower foreign exchange rate and cost saving measures implemented in the previous year has resulted in improved gross margins and improved profitability.

However, he said fourth quarter results would be hit by the decision of the Bank of Papua New Guinea in early June to increase the value of Kina by about 18%, which has increased unit cost of production per tonne of oil by 8.8%.

In October the company received a takeover offer from Sime Darby Plantation which directors have recommended, in the absence of a higher offer.

But Sime Darby’s parent company Sime Darby Berhad, announced that it will have to extend the offer period because of delays in providing data on the proposed takeover to the EU Commission.

– Liverpool Echo.