MP Evans responds to Indonesian export duty revisions
By Josh White
Date: Tuesday 21 Jun 2022
(Sharecast News) - Palm oil producer MP Evans updated the market on two recently-announced revisions to the Indonesian government's palm oil export duty and levy on Tuesday.
The AIM-traded firm said the first set of revisions was effective from 14 June to 31 July, and resulted in a decrease in the combined duty and levy payable by the group of up to $87 per tonne, depending on the reference price of crude palm oil.
However, for the period up to 31 July, the Indonesian government was also introducing a $200 per tonne export tariff, to be charged in addition to the export duty and levy.
From 1 August, at which point the export tariff would no longer apply, a second set of revisions would be introduced.
That, MP Evans said, would result in a decrease of up to $47 per tonne in the combined export duty and levy payable, compared to the duty and levy in place before 14 June.
"As reported in the trading statement published on 10 June, the group achieved an average mill-gate price for its sales of crude palm oil of $1,079 per tonne in the first five months of 2022, compared with $715 for the same period in 2021," the board said in its statement.
"Following the government's revisions to the export duty and levy, coupled with a softening in the cif Rotterdam price, recent mill-gate prices achieved have been around $750 per tonne.
"Management will continue to monitor the situation closely as the new arrangements come into force."
At 1142 BST, shares in MP Evans Group were down 7.63% at 907.04p.
Reporting by Josh White at Sharecast.com.
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