NBPOL revenue drops 17%

 THE New Britain Palm Oil Group Ltd’s (NBPOL) revenue fell by 17.5% to US$558.7 million (K1.3 billion) due to lower palm oil prices and lower production last year.

In 2012, the group’s revenue was US$667 million (K1.6 billion).

Chairman Antonio Monteiro de Castro said: “The past year has been very challenging, with palm oil prices remaining subdued for the first half of the year, and akin to 2012, we endured another exceptionally wet first quarter in our biggest production location (West New Britain), which hampered crop harvesting and collection. 

“At most of our production sites and regionally across South East Asia as a whole, fresh fruit bunch (FFB) production was reportedly lower than expected in the second half of the year, suggesting this to be a biological yield effect.

“The combined effects of lower palm oil prices and lower production have seen the group’s profit before tax drop significantly from US$81.6 million (K197.57 million) in 2012 to US$ 17.3 million (K41.8 million) in 2013. 

“On the positive side, the group has made good progress in reducing its US dollar based production costs and this has been coupled with a devaluation of the kina so  that  we  have  had both  dollar  and  kina  related cost reductions”.

According to its last financial year’s unaudited report, profit before tax dropped 78.8% to US$17.3 million (K41.8 million) compared with US$81.6 million (K197.57 million) in 2012.

Net foreign exchange loss was US$17.5 million (K42 million) including non-cash unrealised exchange losses on restatement of US dollars borrowings of US$23.2 million (K56 million).

Net cash generated from operating activities was US$142.6 million (K345 million) while in 2012 was US$ 141.8 million (K343 million).

Last year’s capital expenditure also decreased by 55% to US$ 70.7 million (K171 million) compared with US$157.2 million (K180.62)  in 2012.