Hard Choices

​With the palm oil sector transitioning through a down cycle in commodity pricing, (sector values are down 55% on the 2011 sector peak), plantation companies are facing critical choices in terms of cash utilisation and investment. REA is no exception. The company has the added pressure of having a relatively high gearing ratio (64% at the half year). With profitability only just maintained, as the palm oil price trades at levels last seen a decade ago, REA has been concentrating on further tig...