AEP Plantations (LSE:AEP) reported revenue of $249.7 million for the six months ended 30 June 2026, an increase of 8.3% from the corresponding period a year earlier.

Profit before tax rose 5.1% to $65.8 million. The results included a $9.1 million bargain purchase gain related to the acquisition of Pinago and reflected higher production of fresh fruit bunches and crude palm oil.

At the end of the period, the group held cash reserves of $109.5 million and had bank borrowings of $13.2 million.

Pinago Acquisition Adds 14,300 Hectares

During the period, AEP completed the $158.3 million acquisition of Pinago in South Sumatra, adding 14,300 hectares of mature plantations to its operations.

The transaction increased the group’s total planted area to 87,392 hectares. AEP subsequently increased its ownership interest in Pinago to approximately 99.48%.

The company also acquired PT Jaya Jadi Utama as part of plans to support the development of a new mill in Kalimantan.

Replanting and Shareholder Returns Continue

Alongside its expansion activities, AEP continued its largest replanting programme and returned $25.9 million to shareholders through dividends and share buybacks.

The company also indicated plans to pay an interim dividend.

For the second half of the year, AEP is targeting continued operating performance against a backdrop of elevated crude palm oil prices.

More About AEP Plantations

AEP Plantations Plc owns, operates and develops palm oil and rubber plantations in Indonesia and Malaysia.

The group’s operations include fresh fruit bunch production, milling and processing. Its plantation portfolio includes operations in regions such as South Sumatra and Kalimantan, while its investment programme covers acquisitions, replanting and additional mill capacity.