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AEP Plantations PLC on Thursday announced a higher annual pretax profit helped by an increase in production volumes and higher prices, as it sharply raised its annual dividend. The operator of sustainable palm-oil plantations in Indonesia and Malaysia said pretax profit climbed 35% to $119.3 million in 2025 from $88.1 million in 2024. Revenue rose 25% to $465.2 million from $372.3 million. Pertinently, fresh fruit bunch production was up 6% to 1.08 million metric tonnes from 1.02 million metric tonnes in 2024. Crude palm oil output climbed 7.3% to 425,800 metric tonnes in 2025 from 396,700 tonnes in 2024. Administrative expenses increased 52% to $14.2 million from $9.4 million. Chair Jonathan Law Ngee Song said: ‘We delivered a strong trading performance in 2025, supported by resilient operational execution and favourable crude palm oil and palm kernel prices. We achieved increased production volumes and strong cash generation, reflecting both the quality of our plantation assets and the effectiveness of our operational strategy.’ The company proposed a final dividend of 43.7 US cents per share, compared to 51.0c a year ago. However, with its interim dividend of 37.3c already paid, this brings the total payout for 2025 to 81.0c, up 59% from 51.0c for 2024 for which it had declared only one dividend. Looking ahead, Chair Law Ngee Song said: ‘CPO remains competitively priced against other vegetable oils, with its discount to soybean oil continuing to support demand, particularly in cost-sensitive markets. In addition, Indonesia’s mandatory B50 biodiesel programme, effective from July 2026, is expected to drive stronger CPO demand and serve as a key anchor for price stability.’ He added: ‘Near-term volatility is expected to persist, driven by geopolitical tensions, especially in the Middle East, which impact crude oil prices, freight costs, and overall market sentiment. These factors are also contributing to rising input costs, with increases in diesel and fertiliser prices, particularly urea, weighing on plantation margins. ‘Notwithstanding the rising costs, given that CPO prices are expected to remain elevated, we expect sustainable performance for 2026.’ AEP Plantations shares rose 4.9% to 1,922.00 pence each on Thursday afternoon in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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