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New Britain enjoys momentum

New Britain Palm Oil has enjoyed a storming first nine months of the year as the company continues to benefit from buoyant palm oil prices and the contribution from acquisitions and plantations expansions it has carried out in recent years.

In the first nine months the company has processed a record 452,125 tonnes of oil, up 35 per cent on last year, and achieved prices were 38 per cent ahead at $1,115 per tonne, resulting in a 138 per cent hike in profits. But prices have moderated a little of late, dipping below $1,000 per tonne in September before recovering a little. Forwards sales for 2012 have been agreed for 135,000 tonnes at an average price of $1,027 per tonne.

IC VIEW:

Prices may have moderated slightly, but all indications suggest that demand for crude palm oil is set to remain strong and New Britain's vertical development plans with its refinery and bakery products plant in Liverpool are sensible developments. Buy at 822p.

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By Graeme Davies,
25 November 2011

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