DSNG CPO Production Increased 31%
Jakarta, 30 July 2013 – PT Dharma Satya Nusantara Tbk (DSNG) increased CPO production to 145,397 tons in the first half of 2013, or 31.1% higher compared to the same period last year. The Company’s CPO sales volume also increased by 30.5% to 147,693 tons.
This performance was driven by an increase of 28% in Fresh Fruit Bunch (FFB) production from the Company’s nucleus and plasma plantations during the first six months to 555,570 tons. A total of 600,350 tons FFB were processed during the period, including locally purchased output, as a result of an expansion in milling capacity in 2012. Through June 2013, the Company maintained high levels of efficiency and effectiveness with a CPO Oil Extraction Rate (OER) averaging 24.2% and Free Fatty Acids (FFA) averaging just 2.6%.
PT Dharma Satya Nusantara Tbk Chief Executive Officer, Mr. Djojo Boentoro, said that the increase in production volume was due to both growth in mature plantation area belonging to the Company as well as aging of mature trees. The area of mature plantations increased from 42,333 hectares in 2012 to 48,470 hectares in 2013, while FFB productivity per hectare reached 11.9 tons during the first semester of 2013, or a 9% increase compared to the same period last year.
The Company remains on track with its on-going expansion plans as well. “Our planting program has proceeded as scheduled, delivering 4,195 hectares of new plantation area in the first half of 2013, which was 116% higher compared to last year’s achievement. Our total plantation area was 65,247 hectares as of June 2013”.
Through the end of 2013, the Company has targeted a planting program of 8,000 hectares, of which 4,200 hectares are nucleus and 3,800 are plasma plantations.
OPERATING PROFIT UP 9% TO IDR 260 BILLION
The Company reported net sales of IDR 1.7 trillion, roughly in line with net sales for the same period last year despite the significant decline in average CPO prices. Of total net sales, the plantation segment contributed approximately 60%, or IDR 1 trillion, while the Company’s wood working operations contributed 40%, or around IDR 0.7 trillion.
According to Deputy Chief Executive Officer PT Dharma Satya Nusantara Tbk, Mr. Andrianto Oetomo, the contribution from the plantation segment has increased from just 55% in the previous year.
While net sales remained stable, the Company’s operating profit was 9% higher at IDR 260 billion, compared to the operating profit of IDR 238 billion in H1 2012. This was primarily due to a decline of 8.4% in the Company’s CPO cost of sales per ton, from IDR 4.7 million during the first semester of 2012 to IDR 4.3 million in the first semester this year.
“Although we saw a decline in global CPO prices this year, we were able to maintain our gross profit margin of 28%, while realizing an expansion in operating profit margin to 15%,” Mr. Oetomo added.
As of June 2013, the Company recorded IDR 5.7 trillion in total assets, or an increase of 11% compared to IDR 5.1 trillion in June 2012. Shareholder Equity of IDR 1.9 trillion was higher by 35.6%.
WOOD PRODUCT BUSINESS
In the first semester of the year, the Company’s wood paneling sales volume reached 134 thousand cubic meters, a decline of 28% from the same period last year. Despite the lower sales volume, the average selling price for wood paneling was 22% higher. Similarly, the sales volume of engineered flooring products declined by 19%, while the average selling price was 8% higher.
ABOUT DSN GROUP
DSN Group was established on 29 September 1980. Initially DSN Group started operations as a logging and wood products manufacturing company. In the late 1990s, DSN Group diversified its operations to commence land acquisitions for palm oil operations and commenced oil palm cultivation in 2001 and commercial production of CPO and PK in 2002.
FOR FURTHER INFORMATION
Paulina Suryanti
Corporate Secretary
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Kawasan Industri Pulogadung
Jakarta 13930, Indonesia
Email: corporate.communications@dsngroup.co.id