Anglo-Eastern Plantations

[ILAD]

The Indonesian Rupiah is the worst-performing currency in Asia this month.

We expect Bank Indonesia to stand pat at 5.75%. Headline inflation has slowed to 2.3% (BI target 2-4%), but the central bank has abstained from policy easing due to IDR weakness. Our house view is that the next rate move will be a cut in 1Q24 or later.


The Rupiah has weakened to a level last seen during the peak pandemic as USD/IDR breached the December 2022 high of 15,770 and next target for the Rupiah bears will be March 2020 high of 16,625.

AEP zou toch een deel van de IDR cash balances omzetten naar USD ?

groeten

Currency risk

Most of the Group's operations are in Indonesia. The Company and Group accounts are prepared in US Dollar which is not the functional currency of the operating subsidiaries. The Group does not hedge its net investment in its overseas subsidiaries and is therefore exposed to a currency risk on that investment. The historical cost of investment (including intercompany loans) by the parent in its subsidiaries amounted to $50,746,000 (2021: $52,710,000), while the statement of financial position value of the Group's share of underlying assets at 31 December 2022 amounted to $463,383,000 (2021: $440,030,000).



All the Group's sales are made in local currency and any trade receivables are therefore denominated in local currency. No hedging is therefore necessary.



Selling prices of the Group's produce are directly related to the US Dollar denominated world prices. Appreciation of local currencies, therefore, reduces profits and cash flow of the Indonesian and Malaysian subsidiaries in US Dollar terms and vice versa.



There are no borrowings in the Group and therefore there is no longer any currency risk for the Group in respect of this. The average interest rate on local currency deposits was 0.88% higher (2021: 2.74% higher) than on US Dollar deposits. The unmatched balance at 31 December 2022 was represented by the $13,142,000 shown in the table below (2021: $13,504,000).

CPO is a US Dollar denominated commodity and a significant proportion of operating costs in
Indonesia (such as fertiliser and fuel) and development costs (such as heavy machinery and mill equipment)
are imported and are US Dollar related.

Adverse movements of Rupiah against US Dollar will increase operating costs and will have a
negative effect on the profitability and raise funding costs.

The Board has taken the view that these risks are inherent in the
business and feels that adopting hedging mechanisms to counter the
negative effects of foreign exchange volatility are both difficult to achieve
and would not be cost effective.

dit laatste is zeer twijfelachtig
de 2de belangrijkste actiefpost is cash balances, en deze post kan gemakkelijk gedeeltelijk geconverteerd worden in USD

groeten

[Decanus]

Handel in AEP is al een tijd vooral een off-book gebeuren .

[ILAD]

Handel in AEP is al een tijd vooral een off-book gebeuren .

wachten op de aankondiging van de uitkoop van de minderheidsaandeelhouders

groeten

[ILAD]

https://otp.tools.investis.com/clients/ ... 7&cid=1471

groeten

[Decanus]

https://otp.tools.investis.com/clients/ ... 7&cid=1471

groeten

During this period, the Board also approved an investment of $10m into some short-term capital protected securities for a better yield .