Highlights:

  • Own FFB production increased 7%, while purchased FFB rose 21%, driving total CPO production up 8% and PK production up 14%.
  • Cash and short-term investments reached $240 million, with no bank borrowings.
  • Strategic acquisition of PT Jaya Jadi Utama will expand the landbank and FFB supply for the new KAP mill.

Anglo-Eastern Plantations Plc (LSE:AEP) has released its trading update for the nine months ending 30 September 2025, showing growth in both production and financial metrics. The company’s own and purchased fresh fruit bunches (FFB) increased, driving higher crude palm oil (CPO) and palm kernel (PK) output.

Production Increases Across Key Metrics

For the nine months ended 30 September 2025, Anglo-Eastern Plantations’ own FFB production reached 816,200 metric tons, up 7% from 764,800 metric tons in the same period of 2024. The increase was mainly driven by improved yields from young and mature palms in Bengkulu and Kalimantan, Indonesia.

Purchased FFB production also rose by 21% to 883,600 metric tons, supported by new third-party crop intake at the recently commissioned HPP Mill in North Sumatra. This combination of own and purchased FFB contributed to an 8% increase in total CPO production to 321,500 metric tons, while PK production rose 14% to 79,500 metric tons.

Average ex-mill prices improved during the period. CPO averaged $855 per metric ton, up 11% from $768 per metric ton in 2024, while PK prices increased 60% to $734 per metric ton. Ex-Rotterdam CPO prices reached $1,212 per metric ton, a 17% increase from $1,040 per metric ton in the previous year.

Financial Position and Cash Management

As of 30 September 2025, Anglo-Eastern Plantations reported cash and cash equivalents, including short-term investments, of approximately $240 million, compared with $183 million at 31 December 2024. The increase follows dividend payments and share buybacks totaling $25.6 million, reflecting ongoing cash generation and strategic capital management. The company has no outstanding bank borrowings.

Development and Expansion Plans

During the first nine months of 2025, the company replanted 1,614 hectares and established 124 hectares of new plantings. This aligns with its five-year target to replant around 10,000 hectares to sustain long-term productivity and yield improvements.

Construction of the eighth mill on the KAP estate in Kalimantan remains on schedule for December 2026 completion. Earthworks have been substantially completed, with housing, water reservoir, and effluent facilities under development. Structural and mechanical work is set to begin in November 2025.

Strategic Acquisition

Anglo-Eastern Plantations has entered a conditional agreement to acquire Admiral Potential Sdn Bhd, owner of PT Jaya Jadi Utama in Central Kalimantan, for Rp150 billion (approximately USD 9.0 million). The acquisition, to be financed through internal cash reserves, will expand the company’s landbank and strengthen FFB supply for the KAP mill, subject to satisfactory due diligence.

Outlook

CPO prices are expected to remain steady for the remainder of 2025. The planned implementation of Indonesia’s Biodiesel B50 mandate, targeted for mid-2026, is projected to increase domestic consumption, tighten supply, and provide ongoing support for CPO pricing.

AEP shares were trading at GBX 1,335.00 per share at the time of writing on 31 October 2025.