When New Britain Palm Oil (NBPO) reported its full-year results a couple of months ago, we said that after last year's perfect storm of low palm oil prices and poor weather conditions, shareholders could expect to reap better returns in 2014. Now, a first-quarter trading statement suggests this is, indeed, materialising.
Sales grew 14 per cent in the quarter to $169m (£99m), while pre-tax profit soared 153 per cent to $32.4m. This reflected a combination of higher production, better extraction rates, higher selling prices and lower costs. By the end of April, New Britain had 25 per cent of its annual crude palm oil production sold or forward priced at an average $967 per tonne - a significant improvement on last year. The only storm cloud came in the form of a tropical cyclone which disrupted a small plantation in the Solomon Islands, but this isn't expected to have a major impact on operations.
