2019 Highlights
- Produced 200,141 tonnes of fruit (2018: 197,055 tonnes), a year-over-year increase of 2%
- Produced 41,024 tonnes of Crude Palm Oil (“CPO”) (2018: 40,674 tonnes), a year-over-year increase of 1%
- Revenue of
$29.7 million (2018:$29.1 million ), a year-over-year increase of 2%, primarily from the sale of 40,819 tonnes of CPO at an average price of$665 per tonne (2018: 35,879 tonnes at$777 per tonne) - Net loss of
$91.1 million (2018:$6.3 million ) includes$79.9 million write-down of the Company’s assets under IAS 36 - EBITDA loss of
$1.4 million (2018 EBITDA:$1.3 million )
Subsequent Events
- In
March 2020 , the Company’s wholly owned subsidiary, Feronia Maia Srl, entered into a new$4.5 million short term loan facility withCDC Group plc
Loan Financing
The Company today also announces that Feronia Maia Srl has entered into a loan facility for up to
Funds advanced under the facility will be used for working capital and other general corporate purposes, whilst the Company seeks to strengthen its financial position.
The execution of the facility constitutes a related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied on valuation and minority approval exemptions set forth in MI 61-101.
Restructuring
Board of Director Changes
The Company today announces that Mr. Larry Seruma, currently a non-executive director of the Company, has been appointed as Executive Chairman of the Company. Mr.
Larry Seruma, Executive Chairman of
“In the longer term, it is vital that we reduce the cost of production and the completion of capital projects, such as the construction of the Lokumete mill, are essential to achieve this. However, as the Company cannot meet its debt repayment requirements or remedy the current debt-related defaults, a great deal of work and compromise will be required to restructure the Company’s debts, or find an alternative solution, in order to ensure there is a “longer term”.
“As such, we are in discussions with the Company’s secured debt holders to find a way forward and have entered into a support agreement with the Company’s two largest shareholders to facilitate the Group’s restructuring. Additional debt financing from one of the Company’s principal shareholders, of which
“Plantations et Huileries du Congo is one of the largest private sector employers in the
For further information please contact:
Larry Seruma Executive Chairman, larry.seruma@feronia.com www.feronia.com | Director of Communications and Corporate Development, +44 (0)7554 521421 paul.dulieu@feronia.com www.feronia.com |
About
Feronia is an agribusiness operating in theDemocratic Republic of the Congo (DRC).- At the heart of
Feronia lies a long-established palm oil business, Plantations et Huileries du Congo (PHC), which has three remotely located plantations; Lokutu, Yaligimba and Boteka. - When
Feronia acquired its palm oil business from Unilever in 2009, it had suffered from years of underinvestment and considerable disruption caused by conflict in the DRC. Our initial focus has been on rebuilding the business and resuming production to secure its future and the livelihoods of the thousands of people we directly employ. - Feronia’s plantations produce crude palm oil (CPO) and palm kernel oil (PKO). CPO is part of the staple and traditional diet of the Congolese and, with our products sold locally in the DRC, we are well placed to help decrease reliance on imports and increase food security and quality.
Feronia prides itself on being the guardian of our 109-year-old palm oil business and its employees, communities, and environment. We have a long-term commitment to improve the living and working environment of our employees and their communities and are committed to sustainable agriculture, environmental protection and community inclusion.Feronia has in place an Environmental and Social Action Plan which is focused on implementing environmental and social best practice and improving social infrastructure.Feronia is implementingIFC/World Bank standards for environmental and social sustainability. Our oil palm replanting programme is brownfield in nature – replacing old palms with new – and it has no reliance on deforestation.- Feronia’s management team has extensive experience in managing both plantations and farming operations in emerging markets.
- For more information please see www.feronia.com
Cautionary Notes
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the “Loi Portant Principes Fondamentaux Relatifs A L’Agriculture”, termination or non-renewal of concession rights or expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, lack of infrastructure in the DRC, high inflation rates, limited availability of debt financing in the DRC, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), the Company’s reliance on one major customer, lower productivity at the Company’s plantations and arable farming operations, risks related to the agricultural industry (including adverse weather conditions, shifting weather patterns, and crop failure due to infestations), a shift in commodity trends and demands, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to
The Company now reports EBITDA (earnings before deducting interest, taxes, depreciation and amortization) and EBITDA per share as, whilst both are non-GAAP measures, the Company believes that EBITDA is useful additional information to management, the Board and investors as it provides an indication of the operational results generated by its business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and amortization and it excludes items that could affect the comparability of our operational results and could potentially alter the trends analysis in business performance. Excluding these items does not necessarily imply they are nonrecurring, infrequent or unusual. EBITDA is also used by some investors and analysts for the purpose of valuing a company. Investors are cautioned that EBITDA should not be construed as an alternative to operating earnings or net earnings determined in accordance with IFRS as an indicator of the Company’s financial performance or as a measure of the Company’s liquidity and cash flows. EBITDA does not take into account the impact of working capital changes, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows.
Neither the
Source:
2020 GlobeNewswire, Inc., source