News

June 11, 2009

New Britain Palm Oil Prepares For Further Growth In The Years Ahead

Charles Wyatt

A quick look at the share price chart shows that the price of New Britain Palm Oil is the same as last September when the price of palm oil was falling in line with every other commodity as a result of the financial shambles besetting the world at that time. The company’s actual results for 2008 where not bad with pre-tax profits up from US$79.5 million in 2007n to US$126.3 million, but this figure excluded the effects of revaluing biological assets under IAS41; excluded the effects of the acquisition of Ramu Agri-Industries; and excluded the impact of net foreign exchange losses.

New Britain Palm Oil is a leading producer of palm oil in Australasia and has over 44,500 hectares of palm oil plantations and long leases over 30,000 hectares of additional land. It also has  six oil mills, a refinery and a seed production and plant breeding facility so it is a fully integrated operation.

Higher palm oil prices in the  first half of the year were key to these results as evidenced by the fact that  the average selling price for crude palm oil in 2008 was...