UIE's First Quarter Report 2020

On Tuesday 19 May 2020, UIE Plc. announced its First Quarter Report 2020.

Highlights from Q1

UIE’s net result in the first quarter of 2020 amounted to a loss of USD 32.3 million, a USD 57.5 million reverse relative to the result reported in the first quarter of 2019.

The impact of the Covid-19 pandemic on the financial markets caused significant negative fair-value adjustments to UIE’s investments in Schörling. While the underlying portfolio companies within Schörling are all affected by the pandemic-driven slowdown in business activity, they have all initiated various measures to mitigate the consequences and the extraordinary uncertainties currently prevailing. With strong financial positions and proactive initiatives, UIE is optimistic that the companies are well-positioned to confront the crisis.

UIE’s share of UP’s net profit increased by 16% to USD 9.1 million due to higher production and higher selling prices:

• UP’s production of CPO and PK increased by 5% and 9%, respectively.
• UP’s average selling prices of CPO and PK increased by 17% and 35%, respectively.

UP has, thus far, been able substantially to continue its operations in Malaysia and Indonesia while complying strictly with the conditions imposed during the lockdown implemented by the government (the so-called Movement Control Order) in Malaysia and the partial lockdown in Indonesia. In addition, UP has implemented additional, stringent mitigation measures to minimise the risk of an enforced operational closure.