UIE's Third Quarter Report 2022

On Monday, 21 November 2022, UIE Plc. announced its financial results for the third quarter of 2022. 

Highlights from Q1-3

UIE’s net result in the first nine months of 2022 amounted to a loss of USD 67.6 million, which is a significant change relative to the net profit of USD 79.8 million reported in the first nine months of 2021.

The share of UP’s net profit increased by 13% to USD 48.1 million for the first nine months of 2022 after a strong third quarter. Despite price pressure on production costs, higher prices for crude palm oil ("CPO") and palm kernel ("PK") improved the results from the Plantation Division. UP’s plantation division reported production volumes in the same range as the first nine months of 2021:

• UP’s production of CPO decreased slightly by 1%, while PK increased slightly by 1%. 
• UP’s average selling prices of CPO and PK increased by 26% and 39%, respectively.

With a significant recovery in the third quarter, UP’s refinery division now contributes with a better result than recorded in the first nine months of 2021, after recovering a significant part of the hedging losses incurred in the previous quarters with the deliveries of finished goods produced with cheaper raw material. As reported in previous quarters, this timing difference of raw material hedges was expected to be reversed.

The fair value of UIE's investment in Schörling amounted to USD 165.4 million at the end of September 2022 - a decrease of USD 98.5 million, or 37%, since year-end 2021. This decrease is due to the turmoil experienced in global equity markets during the first nine months of 2022 as well as a weaker SEK. For comparison, the fair value adjustment in the first nine months of 2021 was an increase of USD 31.6 million. Measured in SEK, the fair value of UIE's investment in Schörling decreased by SEK 535 million in the first nine months of 2022 compared to an increase of SEK 408 million in the comparative period in 2021.

The fair value of UIE’s investment in Greenbridge amounted to USD 43.1 million at the end of September 2022. In May 2022, UIE invested an additional USD 16.9 million in a capital increase. The fair value adjustment for the nine months of 2022 amounted to a decrease of USD 8.3 million after reducing the valuations in the third quarter to reflect the prevailing uncertainty in global equity markets.