ANNUAL REPORT 2025
INSIDE
THIS
REPORT
01
OVERVIEW
AEP at a Glance 02
Key Information 04
Financial Highlights 05
Financial Record 06
Estate Areas 07
Location of Estates and Mills 08
Chairman’s Statement 09
02
STRATEGIC REPORT
Business Model 16
Our Strategy 17
Our Marketplace 18
Non-Financial and Sustainability
Information Statement
20
Operational & Financial Review 22
Business Review 25
Corporate Social Responsibility 30
ESG Practices 38
Climate and Nature-Related Risks and
Opportunities
51
Statement by Directors in Performance of
their Statutory Duties in accordance with
Section 172(1) of the Companies Act 2006
97
UNLOCKING
SHAREHOLDER VALUE
A bold “A” anchors our 2025 Annual
Report — marking a new name, a new logo,
and the first step in a visual progression
towards the full AEP mark.
Layered with imagery from our plantations
and produce, this “A” captures the depth
of our core operations and the strength of
our foundation. It embodies our identity
and intent: rooted in fundamentals like
fresh fruit bunches (“FFB”) yields, while
signaling momentum toward our 2026-
2030 strategy. The end cover brings this
narrative full circle, presenting our key
value drivers which are brought together
as a unified system, such as our estates,
mills, environmental, social, governance
(“ESG”) people, innovation, and disciplined
growth, illustrating how each element
connects to unlock and deliver sustainable
shareholder value
A new chapter begins. A foundation set.
AEP in motion.
1
03
GOVERNANCE
Directors’ Report 99
Directors’ Responsibility 104
Directors’ Profile 105
Statement on Corporate Governance 108
Audit Committee Report 115
Risk Management Committee Report 119
Directors’ Remuneration Report 122
04
FINANCIAL
STATEMENTS
Independent Auditor’s Report 137
Consolidated Income Statement 150
Consolidated Statement of Comprehensive
Income
151
Consolidated Statement of Financial Position 152
Consolidated Statement of Changes in Equity 154
Consolidated Statement of Cash Flows 155
Notes to the Consolidated Financial
Statements
157
Company Statement of Financial Position 215
Company Statement of Changes in Equity 216
Notes to the Company Financial Statements 217
05
OTHER
INFORMATION
Notice of Annual General Meeting 227
Shareholder Information 231
Our Offices & Advisers 232
Glossary 233
For more information online,
scan QR Code to visit our
corporate website at
https://aepplantations.com
Our reporting currency is the United States
Dollar. The following currencies may appear in
this Annual Report:
• $ and ¢: United States Dollars and cents
• £ and p: British Pound Sterling and pence
• RM: Ringgit Malaysia
• Rp: Indonesian Rupiah
2
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
AEP AT A GLANCE
The AEP group of
companies (“Group”)
is a producer of
sustainable palm oil,
owning, operating
and developing
plantations and mills
across Indonesia and
Malaysia.
Primary activities include
growing oil palms, FFB, and
processing them into crude
palm oil (“CPO”) and palm
kernels (“PK”).
AEP Group is committed to
the responsible development
of its plantations and
facilities, with particular
attention to both the
environment and society in
which it operates.
OIL PALM PLANTATIONS
Our Group is currently cultivating over 56 thousand ha in mature oil palms (excluding smallholder
cooperative plasma scheme (“Plasma”)) across 13 plantations in Indonesia, together with one (1)
plantation in Malaysia. The weighted average age of the trees in our Group is approximately 14
years. In 2025, our Group produced 1.1 million mt of FFB (2024: 1.0 million mt).
OIL PALM DEVELOPMENT
An oil palm tree usually takes around three (3) years from planting to harvest of the first crop and
will reach peak production around year 10. Our Group has approximately 8.8 thousand hectares
(“ha”) of immature plantations as at 31 December 2025 of which 2.7 thousand ha (excluding Plasma
scheme) were planted in 2025.
PALM OIL MILLS
Our Group operates seven (7) palm oil mills processing up to a combined capacity of 400 mt of FFB
per hour. The combined oil extraction rate (“OER”), being the percentage of CPO extracted from
FFB in 2025, averaged 19.8% while kernel extraction rate, being the percentage of PK extracted
from FFB, averaged 4.9%. The total FFB throughput at the Group’s mills in 2025 was 2.1 million mt
producing 0.4 million mt of CPO and 0.1 million mt of PK.
In line with our long-term growth strategy and commitment to enhancing operational capacity, our
Group has commenced construction of its eighth (8
th
) palm oil mill within the KAP estate. The new
mill is designed to support the growing FFB production from our maturing estates and to improve
logistics efficiency by reducing transportation distances and turnaround time. The mill is planned
with modern processing technology to optimise extraction efficiency, improve energy utilisation
and meet applicable environmental and sustainability standards.
Currently, construction is underway with commissioning and testing targeted for January 2027.
Upon completion, the new mill will further strengthen our Group’s processing capacity, support
higher crop intake in the surrounding estates and position the Group to capture additional value
across the upstream segment.
THIRD-PARTY CROP PURCHASES
In 2025, our Group purchased approximately 1.2 million mt of FFB from external/third-party
producers, comprising smallholders, local farmers and Plasma, for processing through our seven
(7) mills.
BIOGAS PLANTS
Four (4) mills are equipped with biogas plants that capture the methane gas emission to generate
electricity for internal consumption, with surplus power sold to the Indonesian state authorities. This
reduces the mills’ reliance on fossil fuels and improves our Group’s carbon footprint. In 2025, our
Group sold 11.7 GWh of surplus electricity to the Perusahaan Listrik Negara (“PLN”), Indonesia’s
state-owned electricity company.
Furthermore, our first Bio-compressed natural gas (“BioCNG”) plant at the Blankahan estate, which
converts methane captured from palm oil mill effluent (“POME”) into compressed natural gas, has
a production capacity of up to 300 MMBtu per day. Our second BioCNG plant at the Tasik estate
commenced commercial operations in July 2025 and has a production capacity of up to 450 MMBtu
gas per day. Together, the two (2) BioCNG plants delivered a total of 168,253 gas MMBtu in FY2025.
With both facilities in operation, the Group has further strengthened its renewable energy portfolio,
reduced greenhouse gas emissions through methane capture and enhanced value creation by
monetising POME and related by-products.
3
1
2
3
4
5
SECTION 1 :
OVERVIEW
OIL PALM PLANTATIONS
Our Group is currently cultivating over 56 thousand ha in mature oil palms (excluding smallholder
cooperative plasma scheme (“Plasma”)) across 13 plantations in Indonesia, together with one (1)
plantation in Malaysia. The weighted average age of the trees in our Group is approximately 14
years. In 2025, our Group produced 1.1 million mt of FFB (2024: 1.0 million mt).
OIL PALM DEVELOPMENT
An oil palm tree usually takes around three (3) years from planting to harvest of the first crop and
will reach peak production around year 10. Our Group has approximately 8.8 thousand hectares
(“ha”) of immature plantations as at 31 December 2025 of which 2.7 thousand ha (excluding Plasma
scheme) were planted in 2025.
PALM OIL MILLS
Our Group operates seven (7) palm oil mills processing up to a combined capacity of 400 mt of FFB
per hour. The combined oil extraction rate (“OER”), being the percentage of CPO extracted from
FFB in 2025, averaged 19.8% while kernel extraction rate, being the percentage of PK extracted
from FFB, averaged 4.9%. The total FFB throughput at the Group’s mills in 2025 was 2.1 million mt
producing 0.4 million mt of CPO and 0.1 million mt of PK.
In line with our long-term growth strategy and commitment to enhancing operational capacity, our
Group has commenced construction of its eighth (8
th
) palm oil mill within the KAP estate. The new
mill is designed to support the growing FFB production from our maturing estates and to improve
logistics efficiency by reducing transportation distances and turnaround time. The mill is planned
with modern processing technology to optimise extraction efficiency, improve energy utilisation
and meet applicable environmental and sustainability standards.
Currently, construction is underway with commissioning and testing targeted for January 2027.
Upon completion, the new mill will further strengthen our Group’s processing capacity, support
higher crop intake in the surrounding estates and position the Group to capture additional value
across the upstream segment.
THIRD-PARTY CROP PURCHASES
In 2025, our Group purchased approximately 1.2 million mt of FFB from external/third-party
producers, comprising smallholders, local farmers and Plasma, for processing through our seven
(7) mills.
BIOGAS PLANTS
Four (4) mills are equipped with biogas plants that capture the methane gas emission to generate
electricity for internal consumption, with surplus power sold to the Indonesian state authorities. This
reduces the mills’ reliance on fossil fuels and improves our Group’s carbon footprint. In 2025, our
Group sold 11.7 GWh of surplus electricity to the Perusahaan Listrik Negara (“PLN”), Indonesia’s
state-owned electricity company.
Furthermore, our first Bio-compressed natural gas (“BioCNG”) plant at the Blankahan estate, which
converts methane captured from palm oil mill effluent (“POME”) into compressed natural gas, has
a production capacity of up to 300 MMBtu per day. Our second BioCNG plant at the Tasik estate
commenced commercial operations in July 2025 and has a production capacity of up to 450 MMBtu
gas per day. Together, the two (2) BioCNG plants delivered a total of 168,253 gas MMBtu in FY2025.
With both facilities in operation, the Group has further strengthened its renewable energy portfolio,
reduced greenhouse gas emissions through methane capture and enhanced value creation by
monetising POME and related by-products.
AEP AT A GLANCE (CONTINUED)
4
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
KEY INFORMATION
AVERAGE AGE
OF OUR PALM:
14
PALM MATURITY PROFILE (DECEMBER 2025):
Old: 22%
Immature: 14%
Prime: 38%
Young: 26%
CPO & PK PRODUCTION (’000 MT)
’000 MT
500
400
300
200
100
0
2021 2022 2023 2024 2025
CPO PK
104
106
93
106
114
473
456
449
397
426
OWN FFB PRODUCTS VS. THIRD-PARTY FFB PURCHASED (’000 MT):
’000 MT
1,200
1,000
800
600
400
200
0
2021 2022 2023 2024 2025
Own FFB Produced Third-Party FFB Purchased
1,171
1,189
1,142
1,080
1,080
989
1,170
1,124
1,020
1,081
5
1
2
3
4
5
SECTION 1 :
OVERVIEW
FINANCIAL HIGHLIGHTS
2021 2022 2023 2024 2025
433.4
447.6
370.4
372.3
465.2
Revenue
($m)
2021 2022 2023 2024 2025
96.1
86.9
49.4
67.5
90.9
Profit Attributable to Shareholders
($m)
2021 2022 2023 2024 2025
440.0
466.1
513.6
551.0
580.7
Net Assets
(Excluding NCI) ($m)
2021 2022 2023 2024 2025
1,110
1,176
1,298
1,395
1,497
Asset Value Per Share
(¢)
2021 2022 2023 2024 2025
242
219
125
171
231
Earnings Per Share
(¢)
2021 2022 2023 2024 2025
129.3
132.9
69.7
81.7
111.6
Operating Profit
($m)
6
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
FINANCIAL RECORD
Income statement
2025
$000
2024
$000
2023
$000
2022
$000
2021
$000
Continuing operations
Revenue 465,211 372,263 370,435 447,619 433,421
Operating profit 111,553 81,734 69,712 132,895 129,332
Profit attributable to shareholders 90,882 67,514 49,418 86,877 96,054
Dividend proposed for year (31,360) (20,091) (11,868) (9,909) (1,982)
Financial position $000 $000 $000 $000 $000
Non-current assets & long-term
receivables 290,655 295,644 302,034 269,498 282,581
Cash net of short-term
borrowings 231,845 181,908 152,984 221,476 218,249
Other working capital* 64,515 81,231 64,284 81,571 38,284
Deferred tax (2,088) (325) 1,313 3,145 2,994
584,927 558,458 520,615 575,690 542,108
Non-controlling interests (4,238) (7,427) (6,976) (109,595) (102,078)
Net assets (excluding NCI) 580,689 551,031 513,639 466,095 440,030
Share capital 15,504 15,504 15,504 15,504 15,504
Treasury shares (13,840) (2,487) (1,847) (1,171) (1,171)
Share premium and capital
redemption reserve 25,022 25,022 25,022 25,022 25,022
Exchange reserves (381,476) (364,402) (341,180) (288,891) (241,907)
Retained earnings 935,479 877,394 816,140 715,631 642,582
Equity attributable to
shareholders’ funds 580,689 551,031 513,639 466,095 440,030
Ordinary shares in issue (‘000s) 39,976 39,976 39,976 39,976 39,976
Basic EPS (US cents) 231.42cts 170.88cts 124.92cts 219.19cts 242.34cts
Dividend per share for year
(US cents) 81.0cts 51.0cts 30.0cts 25.0cts 5.0cts
Asset value per share (US cents) 1,497cts 1,395cts 1,298cts 1,176cts 1,110cts
Exchange rates - year end
Rp : $ 16,782 16,162 15,416 15,731 14,269
$ : £ 1.35 1.25 1.27 1.20 1.35
RM: $ 4.06 4.47 4.60 4.41 4.17
Exchange rates - average
Rp : $ 16,475 15,847 15,255 14,810 14,312
$ : £ 1.32 1.28 1.24 1.24 1.38
RM: $ 4.28 4.57 4.56 4.40 4.15
* Other working capital comprises current assets, excluding cash and cash equivalents, less current liabilities and non-current
liabilities, with the exception of deferred tax liabilities..
7
1
2
3
4
5
SECTION 1 :
OVERVIEW
ESTATE AREAS
GROUP
TOTAL MALAYSIA
INDONESIA
TOTAL
NORTH
SUMATRA BENGKULU RIAU BANGKA KALIMANTAN
Mills/Biogas Plants
Number of Mills 7 - 7 3 2 1 - 1
Number of Biogas
Plants 4 - 4 2 1 - - 1
Combined Mills
Capacities (mt/hr) 400 - 400 160 120 60 - 60
Planted at
31 December 2025 Ha Ha Ha Ha Ha Ha Ha Ha
Oil palm
Mature 56,224 3,414 52,810 17,058 11,876 4,013 2,568 17,295
Immature 8,758 - 8,758 1,729 4,634 492 256 1,647
Total oil palm 64,982 3,414 61,568 18,787 16,510 4,505 2,824 18,942
Oil palm under Plasma
Scheme
Mature 3,422 - 3,422 230 - - 485 2,707
Immature 920 - 920 - - - 37 883
Total oil palm under
Plasma scheme 4,342 - 4,342 230 - - 522 3,590
Total oil palm
(including Plasma
scheme) 69,324 3,414 65,910 19,017 16,510 4,505 3,346 22,532
Others
Reserve 7,876 1,646 6,230 777 - - 1,220 4,233
Unplantable Areas 8,015 1,236 6,779 1,037 1,463 45 2,254 1,980
Oil Palm Nursery/
Mill/Infrastructure 3,147 72 3,075 1,038 552 98 22 1,365
Total other area 19,038 2,954 16,084 2,852 2,015 143 3,496 7,578
Total area 88,362 6,368 81,994 21,869 18,525 4,648 6,842 30,110
8
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
LOCATION OF ESTATES AND MILLS
2
3
4
5
6
7
8
9
12
13
14
Kalimantan
1
Peninsular Malaysia
10 11
6. HPP
7. CPA
8. Tasik
9. BPJ
10. MPM
11. Alno
12. BML
13. AEPN
14. KAP
1. Cenderung
2. Sungei Musam
3. Blankahan
4. Rambung
5. Anak Tasik
Estates
Estates with Mill
Estates with Mill & Biogas
Estates, Mill, Biogas & BioCNG
Sumatra
9
1
2
3
4
5
SECTION 1 :
OVERVIEW
CHAIRMAN’S STATEMENT
Our 2025 EPS from
continuing operations grew
by 35% to 231¢ per share,
reflecting the strength of
our business and team. In
light of this performance,
the Board is pleased to
declare a total dividend of
81¢ per share, reinforcing
our commitment to
shareholder value.
Jonathan
Law Ngee Song
Chairman
We delivered a strong trading performance
in 2025, supported by resilient operational
execution and favourable CPO and PK prices.
We achieved increased production volumes
and strong cash generation, reflecting both
the quality of our plantation assets and the
effectiveness of our operational strategy.
Operationally, we delivered a 6% increase in
FFB production, primarily driven by improved
output from young and matured palms in the
Bengkulu and Kalimantan regions in Indonesia.
FFB bought-in production increased by 18%,
primarily due to new third-party crop intake at the
recently commissioned PT Hijau Pryan Perdana
(“HPP”) Mill (North Sumatra) and Bengkulu
region. As a result, total CPO production rose
by 7%, while total PK production increased by
13%.
Revenues rose by 25% to $465.2 million (2024:
$372.3 million), mainly attributable to higher
production volumes and stronger CPO and PK
prices during the year.
Profit before tax increased by 35% to $119.3
million (2024: $88.1 million), driven by higher
production volumes and stronger CPO and
PK prices during the year. Earnings per share
increased by 35% to 231.42 cents (2024: 170.88
cents), reflecting the stronger operating
performance for the year.
The strength of our financial performance
has further reinforced our balance sheet and
enhanced our strategic flexibility. It enables us to
continue investing in the long-term sustainability
of our estates through replanting programmes,
pursue selective growth opportunities, support
shareholder returns and maintain a resilient
financial position.
10
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
CHAIRMAN’S STATEMENT (CONTINUED)
Our achievements also reflect the significant effort
and disciplined execution across our Group over
the past year, as our board of directors (“Board”)
and management team focused on strengthening
the operational and financial foundations of
the business. Priority has been placed on
rehabilitating older plantations, enhancing estate
productivity, expanding our Group’s land bank
and maintaining a disciplined capital deployment.
These initiatives are intended to reinforce the long-
term sustainability and resilience of our Group’s
asset base.
Supported by the commitment and dedication of
our teams across our Group, these efforts have
contributed to a stronger operational platform and
improved financial performance. Our Group now
benefits from a robust balance sheet and strong
cash generation, providing the flexibility to continue
investing in the long-term development of our
estates while also returning capital to shareholders
through dividends and share buybacks.
Our Board continues to adopt a disciplined and
balanced approach to capital allocation, ensuring
that sufficient resources are retained to support
organic expansion and selective acquisitions, while
delivering sustainable returns to shareholders.
During the year, our Group marked an important
milestone with the successful completion of its
rebranding to AEP Plantations Plc, which took
effect on 24 November 2025.
This development represents more than a change
in name; it reflects the continuing transformation
of our Group as we evolve to meet new
opportunities in a dynamic industry landscape.
As the organisation grows in scale, capability
and ambition, the refreshed identity signals our
readiness to move confidently into the next phase
of our journey while remaining firmly rooted in the
heritage and values that have guided us for over
four (4) decades.
We continue to build on our strong legacy while
strengthening our capabilities to create enduring
value for our shareholders, partners, employees
and the communities in which we operate.
We were also pleased to have been promoted
to the FTSE 250 Index, effective 17 September
2025. This advancement followed the substantial
appreciation in the Company’s share price and the
corresponding growth in its market capitalisation.
Our inclusion in the FTSE 250 reflects the
culmination of many years of disciplined execution,
operational resilience, and the unwavering
commitment of our people across the Group. The
progress we have achieved has been built steadily
over time through a clear strategic focus, prudent
management of our assets, and the collective
efforts of the teams across our organisation.
GROWTH OPPORTUNITIES AND STRATEGIC
EXPANSION
Looking ahead, our Group is entering an exciting
new phase of growth, with Indonesia firmly at the
centre of our long-term strategy.
A key pillar of this strategy is the proposed initial
public offering of our Indonesian subsidiary,
PT AEP Nusantara Plantations Tbk (“Proposed
IPO”). The Proposed IPO represents a natural
progression in aligning our capital structure with
our operational footprint, while broadening our
investor base and enhancing access to local capital
markets. It is expected to support targeted capital
expenditure, including infrastructure development
and processing capacity and to accelerate our
expansion in Kalimantan.
Our achievements also reflect
the significant effort and
disciplined execution across
our Group over the past year,
as our Board and management
team focused on strengthening
the operational and financial
foundations of the business.
11
1
2
3
4
5
SECTION 1 :
OVERVIEW
CHAIRMAN’S STATEMENT (CONTINUED)
The Proposed IPO and the potential addition of
PT JJU represent a balanced and complementary
growth strategy, combining capital market
initiatives, earnings-accretive acquisitions and
operational expansion. These initiatives reflect a
consistent strategic logic: disciplined expansion in
markets where we have demonstrated operational
capability, funded from a position of balance sheet
strength. These developments remain subject
to the requisite regulatory approvals, and we
will provide further updates in due course as the
process progresses.
Our Board remains committed to pursuing growth
in a disciplined and selective manner, ensuring
that all investments are aligned with our strategic
priorities and are expected to be accretive to
shareholder value.
SHAREHOLDER RETURNS
AEP delivered outstanding shareholder returns in
2025, with its share price rising 212% to £19.10, as at
8 April 2026, recording its strongest performance
since the current management team’s appointment
on 1 October 2024.
This significant uplift reflects our Board and
management team’s focused and disciplined
execution. Over the past year, we have prioritised
rehabilitating mature plantations, improving
estate productivity, expanding our land bank, and
maintaining strict capital discipline. These actions
have strengthened our operational platform,
enhanced financial performance, and driven strong
cash generation.
As a result, our Group now benefits from a robust
balance sheet and the financial flexibility to both
invest for long-term growth and return capital to
shareholders.
In line with this, our Board has declared a final
dividend of 43.7 cents per Share. With an interim
dividend of 37.3 cents per Share already paid,
the total dividend declared for the year ended
31 December 2025 will be 81.0 cents (2024: 51.0
cents per Share), representing approximately 35%
of retained profits attributable to our Group for the
year and higher than our dividend policy. Subject
to shareholder approval at the forthcoming Annual
General Meeting, the final dividend will be paid on
30 July 2026 to shareholders on the register on 19
June 2026.
In addition to dividend distributions, our Board
continues to view share buybacks as an effective
means of enhancing our shareholder value where
AEP’s ordinary shares (“Share(s)”) are traded at
a discount to their underlying intrinsic value. In
2025, our Group repurchased 707,762 Shares at
a total cost of £8.7 million at an average price of
£12.20 per Share. Building on this, a further share
buyback programme of up to £8.0 million was
announced in January 2026.
INVESTOR ENGAGEMENT AND MARKET
OUTREACH
During the year, we undertook a step change in
our approach to investor engagement and market
outreach. This initiative was led by our Executive
Director, Marcus Chan, who spearheaded a
structured programme of meetings and investor
roadshows with both existing and prospective
shareholders.
12
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
CHAIRMAN’S STATEMENT (CONTINUED)
These engagements were supported by a comprehensive investor presentation, which articulated AEP’s
strategy, operational footprint, asset quality, financial strength, sustainability agenda and long-term
value proposition. The objective was to ensure that the market gained a deeper and more accurate
understanding of the fundamentals of our business and the strategic direction set by our Board.
The feedback received from investors has been constructive and encouraging. This improved sentiment
was further complemented by the initiation of independent research coverage by our corporate adviser,
which recognised the strategic reset undertaken by our Board and management, the strengthening
operational and financial performance of our Group, and the growing visibility of AEP’s intrinsic value in
the market.
I firmly believe that consistent, transparent and proactive communication with the investment community
is critical to building long-term trust, improving market understanding and supporting sustainable
shareholder value creation. Our Board views this inaugural investor engagement initiative as an important
foundation for more regular and meaningful dialogue with shareholders in the years ahead.
REPLANTING TO IMPROVE LONG-TERM YIELD
Actual Target
Total 2022-2024 2025 2026 Total 2027-2030
Replanting (ha) 4,101 2,440 2,750 7,074
13
1
2
3
4
5
SECTION 1 :
OVERVIEW
CHAIRMAN’S STATEMENT (CONTINUED)
To ensure the improvement of yields, our Company
has intensified its replanting efforts in recent years.
In 2025 alone, approximately 2.4 thousand ha of
aged, low-yielding palms were replanted. Looking
ahead, AEP aims to replant around 10 thousand
ha as part of its 2026–2030 programme, with 2.8
thousand ha identified for replanting in 2026.
This initiative, involving the use of higher-yielding
and disease-resistant palm varieties, is expected
to significantly boost productivity and deliver
improved and sustainable returns.
Our Group’s replanting programme continues to
progress in line with plan. By 2028, AEP expects
to have replaced substantially all older palms trees
in Sumatra estates with younger planting material
that is more disease-resistant, higher yielding and
capable of delivering improved oil extraction rates
compared to earlier generations.
OUR PEOPLE
Our performance is the result of the sustained
efforts of our teams across our Group, who have
continued to focus on improving productivity,
maintaining operational discipline and optimising
resource utilisation. Their commitment has enabled
our Group to deliver consistent operational
outcomes while navigating a dynamic market
environment.
On behalf of our Board, I would like to convey our
sincere thanks to our management and employees
of our Group for their dedication, loyalty,
resourcefulness, commitment, and contribution to
our Group.
OUTLOOK
CPO remains competitively priced against other
vegetable oils, with its discount to soybean oil
continuing to support demand, particularly in
cost-sensitive markets. In addition, Indonesia’s
mandatory B50 biodiesel programme, effective
from July 2026, is expected to drive stronger
CPO demand and serve as a key anchor for price
stability.
Near-term volatility is expected to persist, driven
by geopolitical tensions, especially in the Middle
East, which impact crude oil prices, freight costs,
and overall market sentiment. These factors
are also contributing to rising input costs, with
increases in diesel and fertiliser prices, particularly
urea, weighing on plantation margins.
Notwithstanding the rising costs, given that CPO
prices are expected to remain elevated, we expect
sustainable performance for 2026.
JONATHAN LAW NGEE SONG
Chairman
30 April 2026
14
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
STRATEGIC
REPORT
This Strategic Report has been prepared
to provide shareholders with information
to complement the financial statements.
Operational KPIs
YIELD PER HA:
Measures the amount of
palm oil produced per
hectare of plantation land.
2025:
19.2mt/ha
2024: 17.8mt/ha
OER:
Evaluates the efficiency of
oil extraction from FFB.
2025:
19.8%
2024: 20.2%
MILL UTILISATION RATE:
Measures the percentage of
the mill’s total processing
capacity being used.
2025:
112%
2024: 102%
15
1
2
3
4
5
SECTION 2 :
STRATEGIC REPORT
Financial KPIs
Sustainability KPIs
SCOPES 1 & 2 EMISSIONS:
Measures direct and indirect
greenhouse gas (“GHG”)
Emissions of our Group.
2025:
1.5 million
tCO
2
e
2024: 1.2 million tCO
2
e
SPOTT SCORE:
Assesses our
public disclosure
and transparency
regarding ESG
practices.
2025:
61.2%
2024: 60.2%
COMPLIANCE WITH
SUSTAINABILITY
POLICIES:
Ensures adherence to
relevant sustainability
standards and policies.
2024 & 2025:
We are compliant certified
with MSPO, ISPO, TCFD,
ISO 14001, ISO 14064-1 and
ISCC. RSPO certification is
in progress.
GROSS PROFIT MARGIN:
Measures the percentage
of revenue remaining after
deducting production costs.
2025:
26.6%
2024: 23.8%
NET PROFIT MARGIN:
Tracks the percentage of
revenue left after all expenses,
including taxes and interest.
2025:
18.6%
2024: 18.2%
16
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
STRATEGIC REPORT (CONTINUED)STRATEGIC REPORT (CONTINUED)
Plantations Palm Oil Mill
Optimisation of existing assets
Implement best
management
practices to ensure
the effective
management of
established oil palm
plantations
Enhance the
efficiency of
operations at
existing palm oil
mills and increase
the sourcing of FFB
from surrounding
plantations to boost
productivity and
overall performance
Expansion into strategic locations
Acquire new oil
palm plantations
in Indonesia
and Malaysia to
strengthen AEP’s
sustainable growth
Setup or acquire new
mills to serve the
company’s plantations
and surrounding
smallholders
Our core values are as follows:
Walk the
block
We walk the
field to grasp
its dynamics
and be in it
to win it
Result-driven
We set
clear goals,
evaluate
progress
and achieve
meaningful
outcomes
Accountability
We own
our actions,
maintaining
openness and
integrity in
everything we
do
Excellence
We aim to do
better every
day, pursuing
continuous
improvement
and learning
to deliver
our best as a
team
People
We recognise
talent and
reward
performance,
promoting
the growth
and success
of our people
WE A PR E
BUSINESS MODEL
Our Group will continue to focus on its strength
and expertise, which is sustainably cultivating
oil palm for FFB and to turn them into CPO. To
increase production and reduce costs, our business
activities revolve mainly around the following:
17
STRATEGIC REPORT (CONTINUED)
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2
3
4
5
SECTION 2 :
STRATEGIC REPORT
STRATEGIC REPORT (CONTINUED)
The culture is instilled throughout the workforce,
through these three main channels:
OUR STRATEGY
Our strategic focus is to drive sustainable growth
and unlock shareholder value by improving
operational performance, enhancing yields and
developing new value-accretive growth platforms.
Climate-related risks and opportunities are
integrated into AEP’s strategy and capital
allocation decisions. Through Climate Scenario
Analysis (“CSA”), the Group has identified
key physical risks, including rainfall variability,
flooding, drought, and temperature increases, as
well as transition risks linked to evolving regulatory
frameworks and market expectations. These risks
are considered in operational planning, including
yield optimisation, infrastructure investments
and sustainability initiatives, ensuring alignment
between long-term resilience and financial
performance.
A key priority is to increase the yield of our
Indonesian plantations to 25 mt/ha by 2030,
positioning our Group towards the upper quartile
of Indonesian oil palm peers. To achieve this, a
structured yield enhancement programme is
being implemented, focusing on:
• Replanting of mature palm trees (>25 years)
to rejuvenate estate productivity;
• Block-by-block yield improvement initiatives,
including identification, rectification, and
rehabilitation of underperforming areas; and
• Enhanced estate management and cost
control to improve overall efficiency.
In parallel, our Group is strengthening its milling
operations to improve extraction rates and
optimise processing costs, thereby increasing
value derived from each tonne of FFB.
Beyond core operations, AEP is investing in
downstream and strategic projects, including
new mills, PK crushing facilities, and digital/
monitoring systems, to enhance operational
control and capture additional value across the
supply chain.
1) Lead by Example:
Our managers and leaders demonstrate the
core values in their behaviour to inspire others
to emulate the same values, fostering trust,
respect and alignment within the organisation.
3) Recognise and Reinforce:
We celebrate and reward employees who
demonstrate the core values through their
behaviour and work. This positively reinforces the
concept and encourages others to follow suit.
2) Simplify and Engage:
The core values are displayed prominently
with simple language, relatable concepts and
infographics to ensure the message resonates
and stays memorable.
18
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
STRATEGIC REPORT (CONTINUED)
Our Group also remains committed to sustainable and responsible practices, including the pursuit of
RSPO certification, expansion of social forestry initiatives, and maintaining high standards in safety
and environmental management. These efforts support long-term resilience and align with increasing
stakeholder expectations on ESG performance.
While revenue is influenced by CPO price volatility and external factors such as weather conditions,
our Group’s strategy focuses on controllable drivers, particularly yield improvement, cost discipline,
and operational excellence.
The Indonesian regulatory framework imposes certain constraints on plantation expansion, including
land ownership caps and limitations for foreign-controlled entities. In addition, the availability of
suitable land is increasingly limited. In response, AEP adopts a disciplined expansion strategy, focusing
on selective acquisitions and maximising productivity from its existing land bank.
Through a combination of higher yields, improved efficiency, disciplined capital deployment, and
strong ESG practices, the Group aims to deliver sustainable long-term value for shareholders.
OUR MARKETPLACE
AEP believes in the long-term potential of palm oil. With its economic production advantages compared
to alternative oils and its status as the most productive source of vegetable oil, palm oil continues to
play a vital role in meeting the demands of a growing global population. AEP remains focused on
leveraging these strengths to deliver value while upholding its commitment to sustainable practices
and responsible growth.
For comparison, the land needed to process one litre (per annum) of refined palm oil vs other refined
crop oils is as follows:
Crop Area required to produce 1L
Palm 1.7 m
2
Soybean 22.4 m
2
12x more land needed than palm
Rapeseed 8.4 m
2
4x more land needed than palm
Sunflower 10.5 m
2
5x more land needed than palm
Corn 58.1 m
2
34x more land needed than palm
Peanut 9.4 m
2
5x more land needed than palm
Compared to palm oil, other crops would require four (4) to 34 times more land to produce an
equivalent weight of palm oil, making palm oil a more sustainable choice compared to other edible
vegetable oils. Additionally, oil palm has a long and productive biological life of 25 years compared to
yearly planting for other soft oils.
Additionally, we have established our own mills in or near our plantations for several strategic and
operational reasons:
• Cost Efficiency and Increased Profit Margins: By processing FFB on-site, we reduce transportation
costs and minimise delays, ensuring the freshness of the fruit and higher OERs, along with being
able to capture more value from the supply chain.
• Quality Control: By owning our own mills, we are able to maintain strict quality standards throughout
the production process, ensuring premium-grade CPO.
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5
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CPO prices in 2025 were generally higher than 2024, starting at $1,225/mt in January. CIF Rotterdam
price averaged at $1,151/mt for the year, 5% higher than last year. Our average ex-mill price for 2025
was at $853/mt, 7% higher than last year of $794/mt. Ex-mill prices are lower than CIF Rotterdam
prices due to logistic, insurance costs, Indonesian levies, and taxes.
Global palm oil market conditions in 2025 were shaped by geopolitical tensions, trade uncertainties,
and inflationary pressures. While these factors weighed on sentiment, CPO prices were supported
by firm demand from key markets and the expansion of Indonesia’s biodiesel mandate. However,
competition from other vegetable oils continued to create price volatility.
Ukraine remained a key exporter of sunflower oil to the European Union despite ongoing challenges,
while Brazil’s strong soybean production and ample global inventories sustained competition from
soybean oil.
• Sustainability: Integrated mills enable us to adopt eco-friendly practices by utilising by-products
like Empty Fruit Bunches (“EFB”) and POME for energy generation via Biogas and BioCNG plants
or repurposing them as organic fertilisers, and ensuring efficient waste management systems.
• Operational Independence: Plantations with own mills are not reliant on external processing
facilities, reducing logistical challenges and potential bottlenecks in production.
In addition to our own FFB, our mills accept FFB from external sources including crops from our
Plasma scheme and surrounding plantations including smallholders and communities. Despite stiff
competition for external crops from surrounding millers, AEP is committed to purchasing more external
crops from these external sources at competitive, yet fair prices, to maximise the production efficiency
of our mills. With higher throughput, the mills would achieve economies of scale in production. AEP
achieved a mill utilisation rate of 112% in 2025 vs 102% in 2024.
A mill is deemed to achieve 100% mill efficiency when it operates 16 hours a day for 300 days per
annum.
COMMODITY PRICES
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$/MT
CPO Price 2025 vs 2024
2025 2024
Source: LSEG Workspace
20
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
STRATEGIC REPORT (CONTINUED)
The relative pricing of soft oils remained a key determinant of CPO demand. Although periods of
tighter supply allowed palm oil to trade at a premium, the narrowing price gap with competing oils
reduced its price advantage in certain markets, moderating demand growth in price-sensitive regions.
Over a period of 10 years, CPO price has touched a monthly average low of $472/mt in November
2018 and a monthly average high of $1,857/mt in March 2022. The monthly average price of CPO from
2016 to 2025 was about $907/mt.
NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT
Our Group complies with the requirements of Section 414CB of the Companies Act 2006 by providing
a wide range of non-financial information about employees, environmental, and social matters in
the table below and in our website. Additionally, AEP has identified key non-financial performance
indicators to measure progress, particularly in relation to carbon emissions and alignment with the Task
Force on Climate-related Financial Disclosures (“TCFD”) recommendations set out in this Strategic
Report.
Non-financial matter Policies and standards which govern our approach Page 38
Business model Business model and strategy Pages 16-17
Principal risks and uncertainties Pages 42-51
Environmental
matters
Principal risks and uncertainties: Country, regulatory and
governance practices
Pages 54-57
Principal risks and uncertainties: Weather and
Environmental and conservation practices
Pages 58-93
Source: LSEG Workspace
2,500
2,000
1,500
1,000
500
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
$/MT
CPO CIF Rotterdam (from year 2016 to 2025)
CPO CIF ROTTERDAM – 10-YEARS PRICE TREND
21
STRATEGIC REPORT (CONTINUED)
1
2
3
4
5
SECTION 2 :
STRATEGIC REPORT
Environmental
matters (continued)
Sustainable Palm Oil Certification Page 37
ESG practices Page 38
Climate-related financial disclosures: Pages 51-89
• Management of Climate Risks Pages 71-80
• Metrics and targets Pages 80-81
• Carbon Reporting 2025 Targets Page 85
GHG emissions tables (Scope 1, 2, 3) Pages 85-89
Corporate Governance: Environmental and corporate
responsibility
Pages 108-114
Other responsible agricultural practices and sustainable
policies can be found on our website
Page 70
Board diversity Page 94
Employees and
Health & Safety
Employees: Employment policies
Directors’ Remuneration Report: Employees engagement
Pages 95-96,
129
Workers are protected from exposure to occupational
health and safety hazards that are likely to pose immediate
risk of permanent injury, illness or fatality. Proper signages
are in place at relevant spots to alert employees of safety.
Workshops and training sessions on occupational safety
and health care are regularly conducted.
Pages 37-40
Social matters Principal risks and uncertainties: Highly Contagious &
Severe Diseases, AEP has implemented stringent policies
and protocols to control and prevent the spread of highly
contagious and severe diseases, drawing on lessons
learned from the Covid-19 pandemic. These measures
aim to safeguard the workplace environment and include
strict procedures for workplace testing, employee self-
isolation when necessary, and home support for affected
individuals. This support ensures employees achieve full
recovery before returning to work.
Pages 42-51
Respect for human
rights
AEP has clear policies of no exploitation of its employees,
including complying with paying minimum wage. It does
not practise child or forced labour in line with the Modern
Slavery Statement referred to on its website. In addition,
a whistle blowing policy is in place to allow any employee
to raise concerns about unethical, illegal or questionable
practices, in full confidence, without the risk of reprisal.
Pages 95 - 96
Anti-corruption and
anti-bribery matters
AEP has in place policies and procedures in respect
of bribery and corruption, with detailed guidelines
and reporting requirements for its UK, Indonesian and
Malaysian operations.
Page 96
22
AEP PLANTATIONS PLC
ANNUAL REPORT 2025
STRATEGIC REPORT (CONTINUED)
OPERATIONAL & FINANCIAL REVIEW
For the year under review, our Group’s continuing operations had achieved the following:
Unit 2025 2024 Variance (%)
FFB production (‘000 mt) 1,080.6 1,019.9 +6.0%
Mature plantation (‘000 ha) 56.2 57.2 -1.7%
FFB yield (mt/ha) 19.2 17.8 +7.9%
Mill FFB processed (‘000 mt) 2,146.7 1,960.8 +9.5%
Internal FFB source (‘000 mt) 976.6 971.9 +0.5%
External FFB source (‘000 mt) 1,170.1 988.9 +18.3%
CPO production (‘000 mt) 425.8 396.7 +7.3%
OER 19.8% 20.2% -0.4%
Performance of the Business during the Year:
• The average CPO price CIF Rotterdam for 2025
was $1,151/mt, 5% higher than 2024’s $1,096/
mt. The ex-mill price for 2025 averaged $853/
mt, 7% higher than last year’s $794/mt.
• FFB production totalled 1.08 million mt, a 6%
increase from the 1.02 million mt recorded
in 2024. Additionally, the yield increased to
19.2mt/ha (2024: 17.8 mt/ha), primarily driven
by improved output from young and matured
palms in the Bengkulu and Kalimantan regions
in Indonesia.
• FFB purchased from third-parties including
local smallholders and Plasma in 2025 amounted
to 1.17 million mt, reflecting a 18% increase
from 0.99 million mt in 2024, primarily due to
new third-party crop intake at the recently
commissioned HPP Mill (North Sumatra) and
Bengkulu region. Our mills processed a total of
2.15 million mt of FFB, 10% higher than the 1.96
million mt processed last year.
• CPO production was 7.3% higher at 425.8
thousand mt, compared to 396.7 thousand mt
in 2024, partially offset by a lower OER of 19.8%
against 20.2% in 2024. PK production for 2025
stood at 105.9 thousand mt, 13.4% higher than
last year’s 93.4 thousand mt.
• Revenue rose to $465.2 million, reflecting a 25%
increase compared to $372.3 million in 2024.
The increase was mainly attributable to higher
production volumes and stronger CPO prices
during the year.
• Administrative expenses increased by $4.8
million, from $9.4 million to $14.2 million. This
was mainly attributable to higher manpower
and general administrative costs of $3.1 million
to support expansion in Indonesia, higher PPE
write-offs of $0.5 million, and increased audit
fees of $0.6 million, largely relating to prior-
year fees recognised in the current year.
• Operating profit was $111.6 million, reflecting
a 36.6% increase from $81.7 million in the
previous year. This improvement was supported
by higher CPO and PK prices, and an increase
in production volume.
• Finance income increased by 48.1%, increasing
from $5.4 million to $8.0 million. The increase
was primarily due to higher cash holdings
during FY2025.
• Profit before tax from continuing operations
for our Group was $119.3 million, 35.4%
higher compared to $88.1 million in 2024. The
changes in fair value of biological assets was a
debit of $1.4 million, contrasting with a credit
of $2.9 million in 2024. This debit was mainly
attributable to lower harvestable FFB as at
31 December 2025. Tax expenses for 2025
increased from $20.5 million to $33.0 million.
• EPS rose from 170.88 cents to 231.42 cents,
primarily due to higher profit after tax.
• Loss on exchange translation of foreign
operations of $15.7 million was recognised in
other comprehensive income, compared to an
exchange loss of $23.2 million in the previous
year. This loss was driven by the weakening of
the Indonesian rupiah at the end of 2025.
23
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2
3
4
5
SECTION 2 :
STRATEGIC REPORT
Financial Position and Cash Flows of the Business at the End of the Year
Our Group’s statement of financial position remains strong, with a cash and cash equivalents balance
including short-term investments (see Note b) of $232.3 million and no external borrowing at the
end of 2025. All material changes in statement of financial position and cash flows are listed in the
following table:
Note 31.12.2025
$000
31.12.2024
$000
Property, plant, and equipment a 272,547 271,170
Income tax liabilities b (10,173) (5,466)
Cash and cash equivalents b, c 231,845 181,908
Short-term investments b, c 500 1,253
Current assets - Investment b, c 22,000 23,976
Net cash generated from operating activities b 113,825 73,947
Purchase of property, plant and equipment a (29,922) (29,013)
Net cash used in financing activities d (46,348) (7,363)
Retirement benefits - net liabilities e (7,972) (11,073)
Notes:
a. The increase in property, plant, and equipment
from $271.2 million in 2024 to $272.5 million in
2025 was mainly due to replanting activities
and mill development and partially offset with
depreciation and exchange translation losses.
b. As of 31 December 2025, our Group held cash
and cash equivalents of $231.8 million (2024:
$181.9 million) and short-term investments
in fixed deposits of $0.5 million (2024:
$1.3 million). The higher cash position was
primarily from profits generated during the
year. Net cash inflow from operating activities
increased by 54%, reaching $113.8 million in
2025 compared to $73.9 million in 2024, mainly
driven by higher profit and lower net tax paid,
offset by a significant tax refund received in
2025.
c. During the year, our Group had invested $22.0
million in Indonesia government bonds and
bonds issued in Singapore, denominated in
US Dollar.
d. Net cash used in financing activities increased
significantly to $46.3 million in 2025, compared
to $7.4 million in 2024. The increase was mainly
attributable to higher dividend payments to
AEP shareholders and share buybacks during
the year.
e. Retirement benefits as of 31 December
2025, calculated by a third-party actuary,
amounted to $8.0 million (2024: $11.1 million),
representing the provision for the Group’s
provision for employee retirement benefit
obligations at the reporting date, reduced due
to lower accrual during the year and higher
contributions to plan assets.
VIABILITY STATEMENT
The viability assessment considers solvency and
liquidity over a five-year period, aligned with the
Group’s strategic planning horizon (2026–2030).
Inevitably, the degree of certainty reduces over a
longer period.
Our Group’s business activities, financial
performance, corporate development and
principal risks associated with the local operating
environment are covered under the various
sections of this Strategic Report.
In undertaking the review of our performance
in 2025, our Board considered the prospects of
our Group, as well as focusing on the strategy
for growth through the expansion of its planted
area in tandem with forecasting demand for
CPO, over one (1) to five (5)-year periods. The
process involved a detailed review of the annual
budget and the five (5)-year income and cash
flow projection. The one (1)-year budget is used
to set detailed budgetary targets at all levels
across our Group. The five (5)-year income and