SINGAPORE/SYDNEY: Fitch Ratings says crude palm oil (CPO) plantation companies in Asia face potentially slower demand from the two largest import markets, China an India, with performance over the next 12 to 18 months subject to the intensity and duration of the decline.
In a new report published Tuesday it said CPO plantation companies in Malaysia and Indonesia have during H113 managed to liquidate their inventory and improve export volumes.
Prices remained low despite improving to between USD840 and USD860 per tonne in H113 from a trough of USD776 in December 2012.
Low prices have also served to depress CPO export realisation (CPO exports in USD /CPO exports in tonnes) in Malaysia at USD743/tonne in H113, down from USD993/tonne in H112.
Despite some deterioration in average selling price and operating profit per tonne, CPO plantation companies' funds from operations (FFO)-adjusted net leverage remains compatible with their rating levels. - Reuters
