Sipef Provides update on volcano eruption
Sipef provided an update on the impact of the Mount Ulawun eruption in PNG, located not far from Hargy Oil Palms (HOPL), a 100% subsidiary of Sipef. After carrying out an inspection on the infrastructure and plantations, Sipef expects the impact in 2023 to be limited, yet foresees a maximum production decline of 20% at HOPL in 2024 and full recovery after 2.5-3 years. Based on today's net selling prices of around $ 900/t, this would translate into a $ 1.4m net profit impact in 2023 and maximum of $ 14.7m in 2024. Following the above, Sipef reiterates its $ 65m - $ 75m net profit outlook for 2023 but mentions that it will now likely come in at the middle rather than the top of the range. After incorporating the impact in our estimates, we slightly lower our TP from € 66.0 to € 64.0ps but reiterate our Buy rating.Sipef is a holding company. Through its subsidiaries and associated companies, Co. is primarily engaged in the development and production of sundry commodities, including palm oil, palm kernels, tea, tropical fruits and flowers, bananas, pineapples, ornamental plants, guava, pepper and natural rubber. Palm oil, which is Co.'s most important commodity, is used within the cosmetics industry, in soaps and detergents, as a supplement to cattle and poultry feed, for production of protein, and for several other purposes. In addition, Co. provides management, marketing and consultancy services in the agro-industry.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.