Clarification of 3rd Quarter 2007 Results

Subject: To: The President Stock Exchange of Thailand

Univanich Palm Oil Public Company Limited hereby submits the Interim Financial Statements for the third quarter ending 30thSeptember 2007. The operating profit from the third quarter of 2007 was 67.2% higher than the same quarter of last year.For the first nine months of 2007, the operating profit was 26.1% higher than for the same period last year.

The main factors affecting this higher result are as follows ;

1. Production
Total Palm Oil produced by Univanich factories was 12.2% lower than in the first nine months of 2006. A severe drought in early 2005 has depressed 2007 fruit production, and heavy rains and low sunshine in the second half of this year has depressed this year’s oil extraction rates.

2. Sales
The average selling price of Crude Palm Oil(CPO) was 44.9% higher than in the first nine months of last year, and the average selling price of Palm Kernel Oil(PKO) was higher by 25.6%. These high prices have been supported by strong demand for both food and biofuel uses,together with tight supply factors on world oilseeds markets.

3. Cost of sales
Cost of sales of Baht 2,400.6 million in the first nine months of 2007 was 69.4% higher than in the same period of last year.The average fruit purchase price per kg was 56.9%higher,following the higher palm oil prices.

4. Net Profit
The net profit after tax for the quarter ending 30th September 2007 ,was 118.92 million (Baht 1.27/share) an increase of 67.2% over the same quarter of last year

For the first nine months of 2007, the net profit after tax was Baht 338.36 million (Baht 3.60 per share) an increase of 26.1% over Baht 268.41 million (Baht 2.86 per share) in the first nine months of last year.

The lower production from our plantations and crushing mills has been more than compensated by the significantly higher selling prices.

 

Yours faithfully,
Univanich Palm Oil PCL.

 

John Clendon
Managing Director

 

cc: The Secretary-General The Securities and Exchange Commission

 

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