CARS.N0000 Carson Cumberbatch PLC

The gap between net assets and market value is narrowing but unfortunately the Net Asset Value is also coming down.

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Carsons shows some characteristics of businessmen we have discussed in Malaysian thread...The businessmen of Malaysia are Asset Traders contrast to manufacturers of South Korea.

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The business sectors of Carsons are clearly Asset Trading and services than patent obtaining manufacturer...In this regard Dr. Sen Yaddehige's managing his companies differently where the group consist of manufacturing oriented few.

We have evaluated how CPO crude Palm Oil price move in parallel with crude oil price.

Under Oil Palm Plantation this was the highlighted text.

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The key factors that impacted the sluggish growth in market prices include: weaker demand for bio-diesel in the wake of cheap crude oil prices and increased production of other competing edible oils such as soybean, rapeseed, sunflower etc.

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Thus it seems even other competing commodity prices like soybean, rapeseed , sunflower move with the cycles of crude oil .

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What is Rapeseed and connection that with Bio Diesel ?

Rapeseed (Brassica napus), also known as rape,^[1] oilseed rape,^[1] rapa, rappi, rapaseed (and, in the case of one particular group of cultivars, canola), is a bright-yellow flowering member of the family Brassicaceae (mustard or cabbage family), consumed in China (油菜: Mandarin Pinyin yóucài; Cantonese:yau choy) and Southern Africa as a vegetable

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Rapeseed oil is used as diesel fuel, either as biodiesel, straight in heated fuel systems, or blended with petroleum distillates for powering motor vehicles. Biodiesel may be used in pure form in newer engines without engine damage and is frequently combined with fossil-fuel diesel in ratios varying from 2% to 20% biodiesel. Owing to the costs of growing, crushing, and refining rapeseed biodiesel, rapeseed-derived biodiesel from new oil costs more to produce than standard diesel fuel, so diesel fuels are commonly made from the used oil. Rapeseed oil is the preferred oil stock for biodiesel production in most of Europe, accounting for about 80% of the feedstock,^[19] partly because rapeseed produces more oil per unit of land area compared to other oil sources, such as soybeans, but primarily because canola oil has a significantly lower gel point than most other vegetable oils.
Rapeseed is currently grown with high levels of nitrogen-containing fertilisers, and the manufacture of these generates N₂O. An estimated 3-5% of nitrogen provided as fertilizer for rapeseed is converted to N₂O

Now a comparison of above mentioned competitive products on bio-diesel with crude oil price.

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Thus anyone who can predict Brent Crude Oil price can predict the earnings of Carson as 50% of its Gross Profit is coming out of Palm Oil

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Above Chart shows another challenge for Carson for next financial year.

That is its Beverage sector is affected by flood the future income of that sector is challenging.

Having down trended oil price along with the beverage sector drowned will make a tough time ahead for Carsons. Yet as the annual reports theme suggest, a focused Strategy will save the company.

CARS.N is still struggling with negative EPS for the quarter -0.30

Crude palm oil at 10-year low, volumes up: Sri Lanka's Carsons

ECONOMYNEXT - Sri Lanka's Carsons Cumberbatch Plc, which owns oil palm farms in Malaysia and Indonesia and processing plants, said bumper harvests boosted volumes but prices fell to a 10 year low in late 2018.

After two years of droughts, palm oil has recorded a bumper harvest in the second half of 2018 and crude palm oil (CPO) had hit a 10 year low in November 2018, the firm told shareholders in the annual report.

Soybean prices had hit a 10 year low in September 2018.

The average CPO price in Bursa Malaysia was 521 dollar per metric tonnes, down from 623 a year earlier.

The average palm kernel price had fallen to 293 US dollars per metric tonne in 2018 from an average of 450 metric tonnes in 2017.

In 2018 the US dollar had strengthened putting several pegged exchange rates under pressure as well as food commodities and oil.

Coconut prices have also fallen sharply in Sri Lanka.

Crude oil had averaged about 63 dollar a barrel, discouraging incentives to use palm oil in bio diesel. Both Malaysia and Indonesia had increased bio-fuel usage levels to increase palm oil use and reduce inventory build-up

At Carsons fresh fruit bunch (FFB) production had grown 27 percent to 1.27 million metric tonnes in the year to March 2019 helped by better weather.

The group had sold 315,000 metric tonnes of CPO up 35 percent from a year earlier, helped by fruits purchased from third parties which were up 185 percent.

Mill utilization levels were the highest in the past 5 years, the firm said.

Revenues of the palm oil sector had grown 19 percent to 28.98 billion rupees in the year to March 2019, but profits fell to 320 million rupees from 1.1 billion rupees a year earlier, the firm said.

"This is mainly due to increase in forex losses on account of USD movements against Indonesian Rupiah, lower
biological asset valuations due to reduction in CPO price, and higher interest costs," Chairman Tilak de Soyza told shareholders.

"In the Oils and Fats sector, prices of lauric oils declined during the year with the price of main feedstock,
Palm kernel, decreasing.

"This price decrease along with a dedicated supply from our own upstream plantations in Indonesia, enabled our
plant to increase its utilization resulting in increased production and sales of specialty fats during the year. (Colombo/Juy31/2019)

This Group is still, as yet, by far, the best investment in the CSE , by any matrix if you can understand the math but it is complicated.