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3 November 2009 

New Britain Palm Oil Limited 

("NBPOL" or the "Company")

2009 THIRD QUARTER REPORT AND TRADING UPDATE

 

New Britain Palm Oil Limited (LSE: NBPO), a large scale integrated industrial producer of certified sustainable palm oil, announces its third quarter report and trading update for the period from 1 January 2009 to 30 September 2009.

As a result of the Bursa Malaysia quarterly reporting requirements of the Company's majority shareholder, Kulim Malaysia Berhad, NBPOL is required to provide the following information in respect of the nine months ended 30 September 2009:

	9 months ended  30 September 2009	9 months ended  30 September 2008
Sales (USD (m))	238.1	259.6
PBT (excluding IAS 41) (USD (m))	61.9	86.3
FFB Produced - own plantations (Mt)	780,776	652,418
FFB Processed (Mt)	1,106,173	954,092
CPO Produced (Mt)	250,557	219,649
PKO Produced (Mt)	22,797	19,978
Average CPO price per Mt achieved (USD)	$717	$950

Notes: 

FFB: Fresh Fruit Bunch, the oil palm crop 

CPO: Crude Palm Oil

PKO: Palm Kernel Oil

USD exchange rates as at 30 September 2009 and 30 September 2008 respectively

Nick Thompson, Chief Executive of New Britain Palm Oil Limited, stated:

"The first nine months of 2008 have been excellent for the Group, with record production of 273,354 tonnes of crude palm and kernel oil; more than 14% ahead of the same period last year but these results reflect lower world oil prices compared to the same period last year. 

A number of our estates will yield over 30 tonnes of fruit per hectare in 2009 which is encouraging progress towards our target of achieving this yield over all of our estates. At the end of the third quarter our stocks of both crude and refined oils awaiting shipment are 31,313 tonnes, although for accounting purposes this is valued at cost. We expect that fruit and oil production will continue to be in line with our 2009 targets.

Palm oil prices have traded in the range of US $530 To $825 per tonne. We have averaged US$717 per tonne for crude palm oil in the first three quarters reflecting previous forward sales. The majority of the fourth quarter's production of crude palm oil has also been sold at an average price of US$694. 

Oil extraction rates at the mills have not been as good as we would have liked but are still at acceptable levels of 22.65% compared to 23.03% for the same period last year.

We have made very good progress at our UK palm oil refinery in Liverpool and production is expected to commence on time, in Spring 2010. As announced previously, we have agreed a substantial off-take agreement from the refinery with United Biscuits and are confident that the refinery will attract similar end users who value the attributes of refined traceable palm oil that is produced sustainably and certified accordingly. 

During the third quarter, the West New Britain operations underwent a surveillance audit for continued Roundtable on Sustainable Palm Oil (RSPO) and ISO 14000 certification. This was the first combined audit of its type within the industry.  Work is also in progress at both Ramu Agri Industries Ltd (RAIL) and at GPPOL in the Solomon Islands for RSPO accreditation. This would then give the Group full RSPO certification should these sites be successful. The Company remains committed to the RSPO principles and continues to improve its performance in this regard.

Oil palm seed sales are showing good signs of recovery following a year of challenging trading as a result of new plantings being curtailed, mainly in Indonesia, due to the global financial crisis.  Current sales year to date are approximately US$2.4 million as against US$8 million for the corresponding period last year. Seed stocks are high and with improving orders we are well placed to satisfy increasing demand.

During the third quarter, an interim dividend of 14 US cents gross per share for the financial year ending December 2009 was announced and is expected to be paid, net of PNG withholding tax on the 16th November.   

Generally costs are in line with expectations with fertiliser and agrochemical costs returning to pre 2008 levels in most cases.  Sugar production and sales at RAIL have also been consistent with the previous year and the general increase in global sugar pricing is encouraging for this business.

Looking forward to 2010, the Company has either forward sold or hedged 91,750 tonnes of oil at an average price of approximately $700 per tonne. 

The board is pleased with the continued growth and improvement of the Company's operations, in terms of plantation expansion, fruit production and refined product potential. The board of NBPOL believes that the fundamentals of the industry remain strong and that the prospects for NBPOL are encouraging, particularly as it should benefit directly from the growing demand for the highest quality, traceable and certified sustainable palm oil products. The Company remains confident that its results for the year ending 31 December 2009 will be broadly in line with its expectations."

Enquiries

Kreab Gavin Anderson  James Benjamin/ Anthony Hughes	Tel: +44(0) 20 7074 1800  Email: nbpol@kreabgavinanderson.com
New Britain Palm Oil Limited Nick Thompson Alan Chaytor  David Dann	Tel: +44(0) 20 7074 1800

Website: www.nbpol.com.pg 

Notes to editors

NBPOL is a large scale integrated industrial producer of sustainable palm oil in Australasia and is headquartered in Papua New Guinea ('PNG'). It has over 44,500 hectares of planted palm oil plantations and long term leases over 30,000 hectares of additional land, some of which will be converted to palm oil, six oil mills, a refinery and a seed production and plant breeding facility. The Company is quoted on both the Main Market of the London Stock Exchange and on the Port Moresby Stock Exchange in PNG.

NBPOL is fully vertically integrated, producing its own seed (which it also sells globally) and planting, cultivating and harvesting its own land and processing and refining palm oil. It also contracts directly with its end customers in the EU and arranges shipping of its products. 

NBPOL has high regard for the importance of its sustainability credentials and is active in proving its performance through its certification to ISO 14001 and its close involvement and support of the Roundtable on Sustainable Palm Oil ('RSPO'). In September 2008, NBPOL announced that its operations in Papua New Guinea were officially certified by the RSPO as conforming to RSPO Principles and Criteria on sustainability.

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