Interim statement of the SIPEF group (3m/2026) (EN NL)

Press Release

Regulated information

The connection to the world of sustainable tropical agriculture

SIPEF off to a strong start, with outlook broadly aligned with last year's record performance

• SIPEF has had a strong start to the year, with palm oil production increasing by 7.3% at the end of March, driven by solid performance in both Indonesia and Papua New Guinea, providing a sound foundation for the remainder of the year. Banana production increased by 2.9% compared to last year.

• Palm oil markets remain favourable, with prices at elevated levels. Benchmark crude palm oil (CPO) futures on MDEX increased from around USD 990 per tonne at the start of the quarter to USD 1 069 per tonne by March, supported by geopolitical factors and changing biodiesel mandates.

• Over the year, palm oil production is expected to be around 470 000 tonnes, in line with the Group's earlier guidance, subject to weather conditions. Benefiting from favourable palm oil markets, SIPEF has secured 44% (compared to 38% in 2025) of its projected volumes at an average ex-mill gate price of USD 1 046 per tonne (compared to USD 1 030 per tonne in 2025).

• The Group expects its recurrent net profit (Group share) in 2026 to be broadly in line with the record recurrent results of 2025, supported by solid production performance and a favourable pricing environment, despite continued pressure from rising input costs related to fertilisers and energy.

• Papua New Guinea continues its recovery from the volcanic eruption in 2023, with the Group's own estates expected to perform well.

•

•

A coalition of partners launched a sustainable landscape development initiative in Mukomuko, Indonesia.

SIPEF and Borneo Futures, a Brunei based scientific consultancy company, strengthened biodiversity monitoring

through a community-driven citizen science programme in Indonesia.

"We have had a strong start to the year, with solid production growth across Indonesia and Papua New Guinea, confirming the positive momentum in our operations. South Sumatra continues to emerge as a key growth driver, while Papua New Guinea is showing a clear recovery. At the same time, we remain mindful of evolving weather patterns and cost pressures. Our focus remains on disciplined execution, operational efficiency, and further strengthening our production base, positioning SIPEF well for the remainder of the year."

"The current pricing remains favourable, and we have already locked in a significant share of our volumes at attractive prices. Alongside a strong start to the year in production, this underpins our expectation that SIPEF will deliver a solid financial performance in 2026, broadly in line with the record results achieved in 2025. We continue to closely monitor input-cost inflation and market developments, while maintaining a disciplined approach to capital allocation and cost management."

Interim management report

1. Group production

   2026 (in tonnes) Palm oil	Own 82 335	Third parties 18 543	Q1/26 100 878	YoY% 7.3%		Own 82 335	Third parties 18 543	YTD Q1/26 100 878	YoY% 7.3%
   Bananas	14 919	0	14 919	2.9%		14 919	0	14 919	2.9%
   2025 (in tonnes)	Own	Third parties	Q1/25			Own	Third parties	YTD Q1/25
   Palm oil	76 548	17 475	94 024			76 548	17 475	94 024
   Bananas	14 496	0	14 496			14 496	0	14 496

   Group production

   The SIPEF group recorded a 5.4% increase in total fresh fruit bunch (FFB) production compared to the first quarter of 2025, reflecting a solid start to 2026. This growth was supported by both Indonesia and Papua New Guinea, where volumes increased by 3.2% and 9.7% respectively, with Papua New Guinea continuing its recovery following the 2023 volcanic eruption. South Sumatra once again stood out, with own production increasing by 19.9% and plasma volumes rising by 45.0%, reflecting the continued maturing of hectares and the growing contribution from South Sumatra production.

   In Indonesia, overall FFB production increased by 3.2% compared to last year, with performance varying across regions. In North Sumatra, FFB production showed a mixed trend, with Tolan Tiga delivering a solid performance supported by improved bunch availability (+3.0%), while the Umbul Mas Wisesa group (-10.0%) faced pressure due to lower bunch formation following earlier dry conditions and a reduction in mature hectarage as a result of ongoing replanting. Rainfall levels remained below historical averages, particularly in the early part of the year, indicating a potential transition towards drier conditions.

   In Bengkulu, FFB production remained in line with expectations, although volumes were 8.2% below last year, mainly reflecting the ongoing replanting programme across parts of the estates (of which 23.4% is immature). Crop conditions benefited from favourable weather patterns in late 2025, supporting stable field performance during the first quarter.

   In South Sumatra, production continued to develop strongly, with FFB volumes increasing significantly compared to the first quarter of 2025. Own production increased by 19.9%, supported by improving crop conditions, higher bunch availability, and the continued maturing of planted areas. In addition, plasma volumes rose by 45.0%, reflecting the growing contribution from the smallholder base as more hectares come into production. Rainfall was sufficiently distributed to support crop development and harvesting conditions. These positive trends underline the continued ramp-up of the region following the planting phases, with South Sumatra increasingly contributing to the Group's overall production profile. Overall performance confirms the strong underlying momentum of the region.

   Crude palm oil (CPO) production in Indonesia amounted to 64 193 tonnes, representing an increase of 7.3% compared to the first quarter of 2025, supported by higher FFB volumes and improved mill performance. Operations in Indonesia recorded an average oil extraction rate (OER) of 23.5%, reflecting stable operational execution across the mills. Oil extraction rates continued to improve following the upgrade programmes implemented across the operations. In North Sumatra, the Umbul Mas Wisesa mill recorded an increase of 4.9% compared to 2025, while Tolan Tiga mills improved by 3.9%, reflecting enhanced processing efficiency. In Bengkulu, mill performance also showed strong progress, with the OER increasing by 5.6%, supported by continued optimisation of processes and strong operational control. In South Sumatra, CPO production continued to grow strongly, with own production increasing by 22.3% compared to the first quarter of last year, supported by higher FFB intake and the continued maturing of planted areas. Oil extraction rates also improved by 1.9% year-on-year, reflecting gradual enhancements in crop quality and mill performance as the estates continue to develop.

   In Papua New Guinea, FFB production continued to perform strongly in the first quarter of 2026, increasing by 9.7% compared to last year, supported by above-average rainfall earlier in the season and the ongoing recovery following the 2023 volcanic eruption. Growth was primarily driven by own plantation production (+15.0% year-on-year), while smallholder volumes remained stable (+2.0%). Performance was consistent across most estates, with only Ibana impacted by ongoing replanting activities.

   Crude palm oil (CPO) production in Papua New Guinea increased by 7.3% compared to the first quarter of last year, reflecting the higher FFB intake. Oil extraction rates were 2.2% lower than last year, reflecting some pressure from crop quality and evacuation delays linked to wetter conditions. Nevertheless, mill operations are stabilising, with ongoing wet weather patterns to ease, which will support extraction performance and production in the coming months.

   Banana production amounted to 14 919 tonnes, representing a 2.9% increase compared to last year. Performance varied across sites, with strong growth at Akoudié (+32.6%) and Agboville (+24.4%), while Motobé (-36.4%) and Lumen (-13.5%) weighed on overall output. At Lumen, yields are starting to adjust towards going concern and expected levels, while at Motobé performance was impacted by agronomical challenges. The required irrigation systems have been installed to support recovery and further improve production going forward.

2. Markets

The first quarter of 2026 began with high stock levels in Malaysia and a relatively balanced supply situation in Indonesia. Prices were initially stable, but in the lead-up to the Price Outlook Conference in Malaysia, markets trended upward. This was driven by expectations of increasing biodiesel mandates and strong export demand, supported by the favourable price spread versus soybean oil.

Despite a brief setback in February, following the Indonesian government's announcement to delay the implementation of the B50 blending mandate, the market quickly rebounded. Prices spiked after the outbreak of the conflict in Iran, with petroleum, gasoil, and bunker fuel prices surging by more than 50%. Vegetable oil prices followed more moderately, influenced by a combination of factors: a significantly improved biodiesel spread and hedging environment, softer import demand due to adequate stocks, and record soybean production in South America.

By March it became increasingly clear that many countries were moving toward higher biodiesel mandates. This trend was reinforced by sharply rising global gasoil prices, exacerbated by the closure of the Strait of Hormuz, which made blending vegetable oils more economically attractive. Indonesia, Malaysia, Thailand, and Brazil all increased their mandates, with Indonesia reversing its earlier delay. In addition, the United States (U.S.) finalised its biodiesel blending mandates for 2026 and 2027 as expected. The higher targets are likely to increase U.S. imports of vegetable oils to meet domestic food demand.

Benchmark CPO futures on Bursa Malaysia Derivatives (MDEX) opened the quarter at around USD 1 000 per tonne and rallied to USD 1 100-1 200 per tonne by March.Palm kernel oil (PKO) continued to see strong demand, despite expectations of lower coconut oil prices due to improved production. Lauric oil demand remained robust - particularly for PKO - while stocks stayed tightly balanced. Prices for PKO hovered between USD 1 900 and USD 2 100 per tonne on the Rotterdam market.

SIPEF - Kasteel Calesberg - 2900 Schoten RPR Antwerpen / VAT BE 0404 491 285 p.