News

November 05, 2008

Nothing Wrong With MP Evans’ Strategy: The Problems Lie With Markets

Sally White

So deeply demoralised have markets become that even the prospect of an OPEC-orchestrated rise in the price of oil is failing to help the alternatives, such as palm oil and its plantation owners. Malaysian crude palm oil futures have tumbled further on rumours of a 1.5million barrels a day cut in crude oil output. Optimism among palm traders was overwhelmed by slower palm exports as top buyers in China and India become serial defaulters. With palm prices down two-thirds from the very recent peak (June), that is hardly surprising.

Thus  the AIM listed producer, MP Evans, faces comment of “excellent business model, just a shame about the market”. Latest progress report on its strategy of selling off its mature Malaysian plantations to re-invest in cheaper Indonesian new production and diversify into Australian beef cattle was excellent!

There was a rise in net income of 135 per cent to US$29.6 million in the interim period to end June. Earnings per share were up 27 per cent and there was net cash of...