AEP Plantations interim profit, revenue up after Indonesian expansion

AEP Plantations PLC on Wednesday reported improved profit and revenue for the first half of the year, benefitting from expanded production capabilities after the acquisition of PT Pinago Utama Tbk.

London-based AEP Plantations, which owns and operates palm oil plantations in Indonesia and Malaysia, said pretax profit for the first half of 2026 increased 5.1% to USD65.8 million from USD62.6 million a year earlier. Revenue rose 8.3% to USD249.7 million from USD230.5 million.

AEP Plantations said crude palm oil output for the period was up 4.3% to 223,600 metric tonnes, from 214,300.

In May, AEP completed the acquisition of the agribusiness Pinago, in South Sumatera, Indonesia, which increased AEP's total planted area to 87,392 hectares, up by a quarter from the end of 2025.

AEP said the takeover, worth USD158 million, was funded entirely from existing cash resources. From the acquisition date to the end of the reporting period, Pinago contributed revenue of USD18.3 million and pretax profit of USD3.5 million.

In addition, AEP said it booked a non-recurring gain from the Pinago acquisition of USD9.1 million. Underlying pretax profit was 9% lower on-year when stripping out this gain, AEP added.

AEP Chair Jonathan Law said: "We expect the production trend to improve in the second half of the year, and with crude palm oil prices likely to remain elevated in the coming months, the board is optimistic that the group will deliver a robust performance in the second half of the year."

Although AEP noted that increased production and inventory levels may reduce crude palm oil prices gains, the company expects prices to be sustained by demand from the food and energy sectors, geopolitical uncertainties and climate risks such as El Nino.

AEP said it will declare an interim dividend by end of the third quarter. A year prior, it declared an interim dividend of 37.3 cents.

Shares in AEP fell 4.5% to 193.00 pence on Wednesday morning in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.