04 April 2007 19:09 [Source: ICIS news]
TORONTO (ICIS news)--Palm oil maker Anglo-Eastern Plantations is finding it hard to further expand in Indonesia, the company said on Wednesday.
Anglo-Eastern, which has about 34,000 hectares of mostly palm oil plantations in ?xml:namespace>
But it added: “Our management continues to search for new land or estates to acquire.”
Analysts have repeatedly noted supply constraints as the two top palm oil-producing countries Indonesia and Malaysia run out of land. Palm oil is in increasing demand as a feedstock for biodiesel.
Anglo reported 2006 operating profit up 18%, at $26.3m (€19.7m), on the back of high palm and crop prices, which more than offset the impact of a weaker US dollar and higher operating costs in
Anglo’s crude palm oil (CPO) price for 2006 was $479/tonne, up 14% from 2005, driven by high demand.
Commenting on the 2007 first quarter and outlook, Anglo said that with the exception of
However, the London-listed company expects to further improve profits this year, provided “current [CPO] prices are maintained and unless there is a significant decline in crops,” it said.
($1 = €0.75)
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