R.E.A. Holdings plc: AGM Statement Highlights Agricultural Performance and Future Plans

R.E.A. Holdings plc (REA) held its AGM today, revealing key agricultural statistics and future strategies. The period from January to May 2024 saw fresh fruit bunch (FFB) production slightly decline to 358,904 tonnes from 360,509 tonnes in 2023 due to replanting. However, crude palm oil (CPO) production rose by 3.5% to 76,243 tonnes.

CPO prices were stable, ranging between $925 and $1,100 per tonne, CIF Rotterdam, with an average realized price of $757 per tonne, up from $718 in 2023. The company is also aligning its operations to meet the EU Deforestation Regulation, potentially increasing CPO prices.

The DSN group's share in REA Kaltim increased from 15% to 35%, diluting REA’s ownership to 65%. Discussions regarding the sale of CDM are ongoing, with REA Kaltim now retaining control to address outstanding issues. Meanwhile, progress is noted in acquiring stone and sand concessions with commercial production underway.

Dividends on preference shares were approved, and future payments are anticipated, subject to financial performance. Market conditions suggest CPO prices will remain favorable, supporting improved cash flows and reduced indebtedness.