MP Evans maintains dividend plans as production rises

Indonesia-focussed palm oil developer MP Evans announced a 29% rise in crude palm oil production in its first half on Monday, at 161,400 tonnes, while palm kernel production was 25% higher at 34,700 tonnes.

The AIM-traded firm said crops for the six months ended 30 June totalled 702,300 tonnes, up 28% year-on-year.

Its board noted the doubling of crop at Musi Rawas as the palms matured at that developing estate, and a 72% increase at Bangka as crops recovered from a period of low rainfall that affected production in 2020.

“All estates and mills have operated without interruption during the period, with appropriate Covid-19 safety measures in place,” the board said in its statement.

In the period ended 30 June, MP Evans realised an average mill gate price of $724 per tonne, compared with $541 in the first half of 2020, making for an increase of 34%.

Prices for palm kernels averaged $491 per tonne at mill gate, higher than the $298 per tonne in 2020.

“Considering the reported crop growth, combined with the increase in crude palm oil prices, it remains the board's intention to recommend a total dividend of 30p per share in respect of 2021, as indicated in the 2020 annual report.”

At 1029 BST, shares in MP Evans Group were down 0.29% at 694p.