MP Evans production figures rise in H1

Oil palm plantation operator MP Evans said on Friday that crop and production figures had continued to rise during the first half of 2020.

MP Evans said the strong showing was a result of increasing yields in certain areas as its palms matured and a move to harvest a larger area as plantings on its newer estates came into harvesting for the first time.

The AIM-listed firm highlighted that all estates and mills had continued to work normally during the Covid-19 pandemic.

In the six months ended 30 June, MP Evans realised an average price at mill gate of $541 per tonne, up 17% from the $462 per tonne realised in the first half of 2019, while prices for palm kernels averaged $298 per tonne, also an improvement on the $263 per tonne seen in 2019.

While the global Covid-19 pandemic took hold and prices hit a low of $510 per tonne in mid-May, they later recovered to more than $650 in mid-July.

"In light of the reported crop growth and strengthening CPO price, the board anticipates that the group will be in a position to maintain its dividend," said MP Evans.

As of 1050 BST, MP Evans shares were up 2.88% at 535p.