DSNG CPO PRODUCTION INCREASED 30,6%

Jakarta, 31 October 2013 – PT Dharma Satya Nusantara Tbk (DSNG) reported an increase in CPO  production to 232,702 tons for the nine months to September 2013, 30.6% higher compared to the same period in 2012. Over the same period, total CPO sales volume of 239,481 tons was 32.1% higher than in 2012.
The Company’s Fresh Fruit Bunch (FFB) output continued to record strong growth as well, with 885,481 tons produced through September 2013 from both nucleus and plasma estates, or 26% higher than FFB production of 702,751 tons in 2012.
FFB production has increased due to increase in both the mature plantation area as well as the average  age of the mature area. As of September 2013, the Company maintained a total of 48,470 hectares of mature plantation, compared to 42,333 hectares as of December 2012.
DSNG’s new planting program remains on target as well. Through September 2013, the Company had planted 5,741 hectares of new plantation area, with a 2013 full-year target of 8,000 hectares of new plantation area.

Operating Margins Maintained at 15%
DSNG booked revenue of Rp 2.68 trillion for the nine months through September 2013, 4.5% higher than the Rp 2.56 trillion through September 2012. The contribution from the plantation segment to total revenue was Rp 1.6 trillion, or equivalent to 61% of the total.
According to Djojo Boentoro, DSNG Chief Executive Officer, the Company managed to largely offset the impact of declining CPO prices year-on-year with significantly higher CPO production, resulting inrelatively stable revenue. The average CPO selling price (ASP) over the first nine months of 2013 was Rp 6.67 million per ton, or 9.3% lower compared to the ASP in 2012 of Rp 7.29 million per ton.
“In addition to higher CPO production, we also managed to reduce our CPO cost of sales per ton  from Rp 4.7 million per ton in 2012 to Rp 4.5 million per ton in 2013. Overall, the third quarter result was quite strong, as we managed to improve our operational efficiency amidst the decline in CPO prices. Our gross profit margin was also stable at around 28%”, Mr. Boentoro further added.
Operating profit through September 2013 was Rp 391.3 billion, or 1% higher than Rp 387.9 billion in September 2012. The operating profit margin declined slightly to 14.6% for the nine-month period from 15.1% in 2012.
DSNG’s net profit through September 2013 was Rp 123.3 billion, a decline of 36.5% from the Rp 194.1 billion recorded over the same period last year. This was largely attributed to unrealized foreign exchange losses of Rp 95.2 billion booked against US dollar loans due to the recent weakening of the Rupiah against the US dollar.
Total assets as of 30 September 2013 were Rp 5.902 trillion, 15% higher compared to last year’s total of Rp 5.141 trillion. At the same time, total equity as of 30 September 2013 was Rp 1.915 trillion, 36% higher than total equity in 2012 of Rp 1.406 trillion.

WOOD PRODUCTS SEGMENT
For the wood product segment, DSNG saw an increase in the average selling prices for Panel, Engineered Doors and Engineered flooring products. This was a result of the Company’s focus on selling higher value added products. Total revenue from the wood products segment through September 2013 was Rp 1 trillion, contributing 38.4% to DSNG total revenue.

ABOUT DSN GROUP
DSN Group was established on 29 September 1980. DSN Group initially began operations as a logging and wood products manufacturing company. In the late 1990s, DSN Group sought to diversify its operations and initiated land acquisitions for palm oil operations, commencing 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