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(Sharecast News) - MP Evans said on Friday that crop and production volumes rose strongly in the first five months of 2026, while palm-oil pricing remained firm and production costs were expected to remain broadly stable.
The AIM-traded sustainable Indonesian palm-oil producer said total fresh fruit bunch crop harvested from group-managed areas increased 10% to 575,100 tonnes in the five months ended 31 May, from 521,400 tonnes a year earlier.
Crop from directly owned areas rose to 438,900 tonnes from 397,900 tonnes, while crop from associated scheme-smallholder areas increased to 136,200 tonnes from 123,500 tonnes.
The group purchased an additional 78,800 tonnes of crop from independent suppliers, down 22% from 100,400 tonnes, as it continued to focus on lower-cost, higher-quality crop from areas under its own management.
Total crop processed rose 5% to 653,900 tonnes, while the average oil-extraction rate increased to 24.2% from 23.5%, reflecting a greater proportion of higher-quality managed crop and improved harvesting and milling standards.
Crude palm oil production increased 8% to 157,600 tonnes from 145,400 tonnes, while palm-kernel production also rose 8% to 34,700 tonnes from 32,100 tonnes.
MP Evans realised an average mill-gate crude palm oil price of $880 per tonne, broadly unchanged from $876 per tonne a year earlier.
The average palm-kernel price increased 7% to $824 per tonne from $770 per tonne.
The company said it had seen no significant pricing changes following the Indonesian government's announcement of planned changes to commodity export procedures.
The changes were not expected to take effect until the start of 2027.
MP Evans does not export crude palm oil directly and continues to sell to domestic Indonesian refineries, currently receiving around $830 per tonne.
The group said higher diesel and fertiliser prices linked to the conflict in the Middle East had increased some input costs, although these had been mitigated by a weaker Indonesian rupiah, renewable energy generation at its mills and its long-term fertiliser purchasing strategy.
Management expected unit production costs for 2026 to be at a similar level to the previous year.
The company also reported progress at two East Kalimantan estates acquired in late 2023.
The estates produced 46,700 tonnes of crop in the first five months of 2026, compared with 53,500 tonnes across the whole of 2024, and MP Evans expects a significantly higher full-year crop.
The proportion of crude palm oil output certified as sustainable increased to 82% during the period, compared with 76% for the whole of 2025, as more crop processed by the group came from managed areas.
MP Evans said it had restarted its share buyback programme, purchasing 133,316 shares between 27 May and 11 June for 2.0m at an average price of 15.00 per share.
The board proposed an increased final dividend of 42p per share for 2025, which would take the full-year dividend to a record 60p per share.
It reiterated its intention to continue increasing, or at least maintaining, shareholder dividends over the long term.
At 1110 BST, shares in MP Evans Group were up 1.2% at 1,522p.
Reporting by Josh White for Sharecast.com.
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