New Britain Palm Oil : Operational Update

3 July 2014

New Britain Palm Oil Limited

("NBPOL", the "Group" or the "Company")

OPERATIONAL UPDATE

New Britain Palm Oil Limited (LSE: NBPO), one of the world's largest fully integrated producers of sustainable palm oil , announces the following operational update.

Production

In the second quarter of 2014 the Group processed 684,485 tonnes of Fresh Fruit Bunches ("FFB"), some 14.2% higher than the same period last year, including 198,346 tonnes from smallholders (2013: 173,968 tonnes).

This takes the Group's total FFB production for the first half of 2014 to 1,303,365 tonnes, some 12.3% higher than the first half of 2013, including 361,238 tonnes from smallholders (2013: 329,874 tonnes).

Crude Palm Oil ("CPO") extraction rates during the half averaged 22.30%, as compared to the corresponding period in 2013 of 21.95%.  As a result of higher FFB production and higher extraction rates, approximately 290,650 tonnes of CPO was produced in the first half of 2014, some 14.1% higher than the same period last year.  Palm Kernel Oil ("PKO") production for the half was approximately 29,000 tonnes, some 14.4% higher than the same period last year.

Oil shipments

The Group shipped 142,923 tonnes of CPO, PKO and refined oils during the second quarter of 2014 at an average price of USD 1,018/tonne compared to 141,027 tonnes in the second quarter of 2013 at an average price of USD 913/tonne. 

This takes the Group's total shipped tonnage for the first half of 2014 to 292,362 tonnes of CPO, PKO and refined oils at an average price of USD 987/tonne, compared to 284,552 tonnes during the first half of 2013 at an average price of USD 907/tonne.

Summary table

*Approximate figures subject to final reconciliation

The average prices achieved for CPO and PKO during the first half of 2014 were USD 937/tonne and USD 1,325/tonne respectively, compared to USD 889/tonne and USD 934/tonne respectively for the first half of 2013.

As at the end of June, the Group had 81,000 tonnes of CPO sold or priced forward for 2014 at an average price of USD 908 /tonne.

Renewal of major customer supply agreements

We are pleased to announce that our UK subsidiary, New Britain Oils, has recently renewed a number of multi-year supply agreements that together represent approximately 35% of the refinery's existing capacity utilisation. This, plus new orders into the bakery sector in particular, re-affirms the Board's view of the refinery's positive contribution to the Group's performance.  

Nick Thompson, Chief Executive Officer, commented:

"FFB and oil production in the first half showed a significant improvement year-on-year and is in line with our market guidance. The month of May was a particularly productive month, with the Group processing a record 260,087 tonnes of FFB through our mills.  In the same month, we also shipped a record 85,304 tonnes of oil, reflecting the Group's strong production as well as the timing of shipments.

We are very pleased to have successfully renewed several major supply contracts with customers of our Liverpool Refinery.  Having many iconic British brands made with NBPOL's palm oil is recognition not only of the growing consumer trend towards using segregated, traceable and certified sustainable palm but also of NBPOL's reputation as a credible, trusted supplier."

Enquiries:

Website:www.nbpol.com.pg

Notes to editors:

NBPOL is a large scale integrated industrial producer of sustainable palm oil in Australasia, headquartered in Papua New Guinea ('PNG'). It has over 79,800 hectares of planted oil palm estates, over 7,700 hectares of sugar cane and a further 9,200 hectares of grazing pasture; twelve oil mills; two refineries, one in PNG, and one in Liverpool, UK; and a seed production and plant breeding facility. The Company is listed on both the Main Market of the London Stock Exchange and on the Port Moresby Stock Exchange in PNG.

NBPOL is fully vertically integrated, producing its own seed (which it also sells globally), planting, cultivating and harvesting its own land, and processing and refining palm oil (both in PNG and the UK). It also contracts directly with its end customers in the EU and arranges shipping of its products.

NBPOL has high regard for the importance of its sustainability credentials. It has achieved 100% certification of all estates, mills and smallholders to the Roundtable on Sustainable Palm Oil ('RSPO') standard. NBPOL continues to be active in proving its performance through its certification to ISO 14001 and its close involvement with other innovative initiatives. The Company is a certified supplier of sustainable palm oil from its entire production base in PNG and Solomon Islands, under the RSPO guidelines."

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