DJ R.E.A. Holdings plc: Further re selling prices
R.E.A. Holdings plc (RE.)
R.E.A. Holdings plc: Further re selling prices
27-Sep-2024 / 07:00 GMT/BST
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R.E.A. Holdings plc ("REA" or the "company")
Further re selling prices and export tariffs
Further to the company's announcement on 6 September 2022 regarding selling prices for crude palm oil ("CPO") and crude
palm kernel oil ("CPKO"), and to subsequent updates thereto published on the company's website at www.rea.co.uk/
investors/cpo-export-tariffs, the Indonesian government has published a change to the export levy structure effective
from 22 September 2024.
Export levy, as also export duty, has, in recent years, been calculated on a sliding scale by reference to a CPO
reference price that is set periodically by the Indonesian government on the basis of recognised benchmark CPO prices.
Export levy is payable to a dedicated fund that utilises levy income to support measures designed to benefit the
growing of oil palms in Indonesia. Export duty is a tax payable to the Indonesian government.
The change just announced by the Indonesian government retains the existing sliding scale of export duty with a top and
bottom cap but now imposes a fixed 7.5 per cent export levy against the CPO reference price with no top or bottom cap,
replacing the previous format of incremental levy increases. The ministerial decree is expected to be reviewed after
six months and the new export tariff structure will remain in place pending any further announcement.
The rates of export levy and export duty following the latest revision are set out below. The CPO reference price for
September is USD839.53, resulting in total export tariffs of USD115 per tonne for CPO (net price of USD765 per tonne) and
export tariffs of USD148 per tonne for CPKO. This represents decreases in the tariffs for both CPO and CPKO of
approximately USD27 per tonne as compared with the regime in force prior to the revision.
REA sells CPO into the local Indonesian market which is not subject to export levy or export duty. However, arbitrage
between the Indonesian and international CPO markets normally results in a local price that is broadly in line with
prevailing international prices after adjustment of the latter for delivery costs and export tariffs and restrictions.
Changes to export tariffs and restrictions therefore have an indirect effect on the prices that REA achieves on sales
of its CPO.
Export tariffs applicable from 22 September 2024
From To Duty Levy (7.5%) Total Example net price*
USD USD USD USD USD USD
- 680 - 51 51 629
681 730 3 55 58 672
731 780 18 59 77 704
781 830 33 62 95 735
831 880 52 66 118 762
881 930 74 70 144 786
931 980 124 74 198 783
981 1,030 148 77 225 805
1,031 1,080 178 81 259 821
1,081 1,130 201 85 286 844
1,131 1,180 220 89 309 872
1,181 1,230 240 92 332 898
1,231 1,280 250 96 346 934
1,281 1,330 260 100 360 970
1,331 1,380 270 104 374 1,007
1,381 1,430 280 107 387 1,043
1,431 1,480 288 111 399 1,081
*At top of band
Enquiries:
R.E.A. Holdings plc
Tel: +44(0)20 7436 7877
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ISIN: GB0002349065 Category Code: MSCM TIDM: RE. LEI Code: 213800YXL94R94RYG150 Sequence No.: 349414 EQS News ID: 1996765 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
September 27, 2024 02:00 ET (06:00 GMT)
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