AEP Plantations, which owns and operates oil palm plantations across Indonesia and Malaysia, expects crude palm oil prices to remain firm through the final quarter of 2026.
This will be underpinned by food demand, energy markets and Indonesia's B50 biodiesel mandate, which requires fuel suppliers to blend 50% palm oil into diesel, the company said in its interim results commentary/
AEP said it remains confident of delivering results in line with full-year market expectations, supported by continued production recovery and the ongoing contribution from its recently acquired Pinago operation in South Sumatra.
The positive outlook follows a strong nine-month trading update in which the group's own fresh fruit bunch production rose 13.3% to 924,500 metric tonnes, while crude palm oil (CPO) output climbed 17.9% to 379,200 metric tonnes.
The average CPO price held steady at $855 per metric tonne for the period, while palm kernel prices improved 5.4% to $774 per metric tonne.
Net cash stood at $99 million at 30 September 2026, down from $232.3 million at the end of 2025, reflecting $160.2 million spent on the Pinago acquisition and $33.2 million returned to shareholders through dividends and buybacks.
The group flagged that El Niño conditions and prolonged dry weather could weigh on yields in 2027, though it noted that any supply disruption would likely support CPO pricing.
The board declared an unchanged interim dividend of 3.73 cents per share, payable on 11 December 2026.
Construction of the group's ninth mill at its KAP Estate in Kalimantan is 98% complete, with commissioning targeted for early January 2027.
