MP Evans Group PLC (AIM:MPE) told investors that palm oil production rose in the first five months of 2026 as stronger harvested volumes and better mill performance offset a reduction in third-party crop purchases.
The Indonesian palm oil producer harvested 575,100 tonnes of fresh fruit bunches from group-managed areas in the five months to 31 May, up 10% from 521,400 tonnes a year earlier. Crop processed through its mills rose 5% to 653,900 tonnes.
Average oil-extraction rates improved to 24.2% from 23.5%, helping crude palm oil production climb 8% to 157,600 tonnes. Palm kernel output also increased 8% to 34,700 tonnes.
Pricing remained supportive, with average mill-gate crude palm oil prices broadly steady at US$880 per tonne compared with US$876 last year. Palm kernel prices rose to US$824 per tonne from US$770, a 7% increase.
The company said it had seen no significant pricing change following Indonesia’s proposed changes to palm oil export arrangements, which it understands will not be implemented until the start of 2027. The company does not export crude palm oil and continues to sell to domestic Indonesian refineries.
It added that cost increases, particularly for diesel and fertiliser, had been mitigated by a weaker Indonesian rupiah, renewable energy generation at its mills and forward fertiliser purchasing. Management expects unit production costs for 2026 to be similar to last year.
MP Evans has also restarted its share buyback programme, buying 133,316 shares between 27 May and 11 June at a cost of £2 million and an average price of £15.00 per share. A proposed 42p final dividend would take total dividends for 2025 to a record 60p per share.
