UIE's Half Year Report 2023
On Wednesday, 16 August 2023, UIE Plc. announced its financial results for the first half of 2023.
Highlights from H1 2023:
UIE's net result was USD 60.5 million in the first half of 2023, which is USD 118.3 million higher than the net loss of USD 57.8 million reported in the first half of 2022.
The share of UP’s net profit was USD 29.1 million in the first half of 2023, which was USD 1.9 million higher than the USD 27.2 million reported in the first half of 2022. This was achieved despite a lower contribution from the plantation division. The higher net result in UP can be attributed to the refinery segment contributing with a net profit in the first half of 2023, compared to a net loss in the first half of 2022.
The contribution from UP’s plantation division decreased as the production volumes of crude palm oil ("CPO") and palm kernel ("PK") declined by 7% and 9%, respectively (due to unfavourable weather conditions), as well as increasing production costs. Furthermore, UP’s average selling prices decreased by 4% for CPO and 38% for PK.
UP’s refinery division contributed with positive earnings in the first half of 2023, positively affected by temporary hedging gains realised in the period, as opposed to the significant hedging loss incurred in the first half of 2022 due to timing differences of raw material hedges.
The fair value of UIE's investment in Schörling amounted to USD 214.2 million at the end of June 2023 - an increase of USD 24.3 million, or 13%, since year-end 2022. The increase reflects a generally positive development in equity markets, including the Schörling portfolio companies. For comparison, the fair value adjustment in the first half of 2022 decreased by USD 81.1 million.
The fair value of UIE’s investment in Greenbridge amounted to USD 46.9 million at the end of June 2023. Accordingly, the fair value adjustment for the period amounted to an increase of USD 3.6 million.
