"Intensive" rain in Papua New Guinea has helped bring an end to a rising trend in palm oil output at plantations group Sipef, after a year of record production in many of its estates.

The palm-to-bananas company forecast that palm oil production in the first quarter of 2010 would be "slightly lower" thanks to rainfall so far this year at its Papua New Guinea operations of 200cm (80 inches) – more than twice the average annual precipitation in the UK, or Kansas.

"The plantations are suffering from a very intensive wet season, resulting in disrupted harvesting and transport of fruit from own plantations and outgrowers," Sipef said.

Plantations in North Sumatra, Indonesia were also "generally in a downward trend, with limited [palm fruit] bunches on the trees".

Shares jump 

Nonetheless, the Belgian group said that it was heading for "another satisfying year", noting a "promising outlook" for its banana, rubber and tea divisions.

Earnings last year rose by 2.4% to a record $60.2m, despite sharp falls in prices of both palm oil and rubber last year.

The drop in revenues, which came in at $237.8m, was limited to 14.9% by record palm production in Papua New Guinea and some Indonesian estates, as well as better banana and tea prices.

Thanks to lower fertilizer prices, costs slumped by 21% to $148m, Sipef said, adding that exchange rates had provided some boost too.

Sipef shares closed up 4.3% to E40.68 in Brussels, their highest finish since September 2008.