By Anthony O. Goriainoff
M.P. Evans Group said it was extending its share buyback program to Dec. 14 from Sept. 14 and increasing the budget by a further 2 million pounds ($2.5 million), as it reported a fall in first-half pretax profit due to a lower price environment.
The London-listed palm-oil producer said Monday that its robust balance sheet gave it the opportunity to take advantage of prevailing market conditions to repurchase shares at advantageous levels.
The company said pretax profit fell to $22.3 million from $61.2 million the year before.
Revenue fell to $134.5 million from $170.3 million. The company said this was mostly due to the lower mill-gate price for group sales of both crude palm oil, which fell 27% to $755 per metric ton, and palm kernels.
The company said total crude palm oil production rose 3% to 166,200 metric tons, and that total crop processed rose 2% to 721,100 metric tons.
The board declared an interim dividend of 12.5 pence a share, flat on the year before.
The company said it continued to increase output, mostly from its own production facilities, and that it was in a strong position to deliver a productive and profitable 2023.
Shares at 0715 GMT were up 4 pence, or 0.5%, at 770 pence.
Write to Anthony O. Goriainoff at [email protected]
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