Higher palm oil prices boost MP Evans

15th Nov 2024 09:11

(Sharecast News) - Shares in MP Evans Group rallied on Friday, after the AIM-listed firm said a surprise jump in crude palm oil prices would bolster profits.

The producer of Indonesian palm oil warned in September that there was a risk prices would fall during the rest of year.

However, on Friday it said: "This has not happened. Furthermore, CPO prices have strengthened significantly since the group's interim results, in response to a tightening of global vegetable oil supplies."

MP Evans achieved an average mill-gate price of $777 per tonne in the first eight months of the year. Since then, the average price increased to around $800 per tonne, with some sales exceeding $950 per tonne in November.

It continued: "This more favourable pricing environment, combined with a continued focus on cost control, means that the board expects group revenue to be higher than previously envisaged, and that there will be a more significant impact of anticipated profitability."

As at 0900 GMT, shares in MP Evans had put on nearly 8% at 1,000p.

Crop forecasts, for 1.6m tonnes this year, were left unchanged.

MP Evans said it would provide a further update on the crop, production and pricing in January 2025.