NBPOL: US$131m profit

Source:
The National - Thursday, March 3, 2011
DESPITE bad weather conditions last year, New Britain Palm Oil (NBPO) delivered a 54% increase on its pre-tax profits to US$131.2 million (K339 million).Adding plantation acquisitions, NBPO raised its output of fresh oil palm fruit bunches to 1.98 million tonnes last year and, with palm oil prices firm, raised revenues by 45% to US$470.5 million (K1.2 billion).NBPO highlighted an end to the difficult weather conditions which set back the group on its “30:30” targets for yield and extraction rates.NBPO chairman Antonio Monteiro de Castro said so far the rainfall this year had been below normal monsoon levels.The comments come amid observations that the La Nina weather pattern blamed for excessive rains in other palm producing countries may be subsiding.Some mills has been achieving palm oil extraction rates of 31%, beating a target of 30% and well ahead of the company average of 22.4% achieved last year – down 0.4 points on the 2009 result because of poor weather.“Palm product extraction rates with good crop quality management coupled with good engineering and process controls could yield over 30% more of palm products from a tonne of fruit,” De Castro said.NBPO also stood by a target of achieving 30 tonnes of fruit per hectare, despite yield declines at some plantations last year, and the acquisition of lower-producing estimates, limiting the group’s result to 23.6 tonnes per hectare.De Castro said the year had mixed results, adding that the group had increased fertiliser application rates to boost output.“It is evident that cropping potential in most of the group’s estates can reach 30 tonnes of fruit per hectare, as this has already been achieved in some estates.”He said the board was pleased with the continued expansion and strengthening of NBPO’s operations, and that the group remained well positioned to deliver further profitable growth.The group had already sold 178,000 tonnes of crude palm oil for US$1,063 (K2,746) a tonne this year, up from last year’s average sale price of US$850 (K2196) a tonne, which was in turn an improvement on 2009’s US$710 (K1834) a tonne.For next year, NBPOL has sold 22,500 tonnes ahead at US$933 (K2,410) a tonne.The current market spot price is about US$1,200 (K3,100) a tonne.