MP Evans (MPE) chief executive Tristan Price said these results were a “shift forward” for the palm oil company. Back in 2016 it sold off its cattle business, and last year exited its share of the Agro Muko palm oil venture. This effectively meant the group now produces "a single commodity in a single country" so, to rectify this, it bought a 10,000 hectare project in East Kalimantan. Management is on the lookout for another similar sized site to buy, and the aim is to reach 70,000 hectares over the medium term, up from around 50,000 now.
In 2017 MP Evans produced 23 per cent more crude palm oil than the year before at 154,000 tonnes, thanks in part to a small increase in the extraction rate of oil from the fruit. A record year for crops and production contributed to a 73 per cent increase in operating profit to $34m (£24m), although it helped that the $714 average price per tonne of palm oil was slightly higher than 2016's $700.
Analysts at Peel Hunt expect pre-tax profit of $46.7m in 2018, giving EPS of 50.1¢, rising to $55.1m and 60.2¢ in 2019.
| MP EVANS (MPE) | ||||
| ORD PRICE: | 758p | MARKET VALUE: | £415m | |
| TOUCH: | 744-758p | 12-MONTH HIGH: | 830p | LOW: 680p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 700¢ | NET CASH: | $74m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
| 2013 | 82.2 | 12.2 | 36.0 | 8.3 |
| 2014 | 90.0 | 24.1 | 49.1 | 8.8 |
| 2015 | 72.5 | 6.8 | 11.7 | 8.8 |
| 2016* | 83.9 | 19.2 | 22.3 | 15.0 |
| 2017* | 117 | 35.1 | 40.7 | 17.8 |
| % change | +39 | +83 | +83 | +18 |
| Ex-div: | 19 Apr | |||
| Payment: | 22 Jun | |||
| *Excludes 5p special dividends £1=$1.42 | ||||
