Quarter I 2018, DSNG Recorded Revenue of Rp 963 Billion

JAKARTA, 30 APRIL 2018 – PT Dharma Satya Nusantara Tbk (“The Company”, “DSNG”) recorded revenue of Rp 963 billion in the first quarter of 2018 on sales volume of 82 thousand tons of CPO. With aggregate Free Fatty Acid (FFA) levels improving to 2.84% this year, fully 80% of the Company’s sales were of Super CPO.

Fresh Fruit Bunch (FFB) production of 296 thousand tons dropped 24% compared  to the same period last year when unseasonably high yields in first quarter of 2017 marked the recovery of the post-El Nino production, as well as the change in 2017 production cycle which higher in the first half of the year.

With total FFB processed falling to 338 thousand tons, the Company’s CPO production also declined by 19% to 80 thousand tons. This lower drop in production was a result of substantial jump in the Company’s oil extraction rate (OER) to 23.79% from 21.90% in the same period last year, as the quality of fruit harvested showed significant improvement.

Average selling prices for the Company’s palm products also weakened from the Q1 2017 highs, with CPO sold for approximately Rp 7.7 million per ton, compared to the same period last year of Rp 8.8 million per ton.

President Director of the Company, Andrianto Oetomo, commented that the decrease in FFB production at the beginning of this semester was as expected and in line with the resumption of normal annual production pattern in East Kalimantan.

“In 2017, the passing of the El-Nino was marked by a significant increase in the Company’s FFB production in the first semester. In the beginning of 2018, however, production pattern appears to have readjusted back to normal, which resulted in the year-on-year reduction in FFB harvested. We are optimistic that our FFB production will grow later this year and target to have a higher production in 2018, with the full recovery from El-Nino and more mature planted area,” said Andrianto.

In the first quarter of 2018, the Company booked EBITDA of Rp 242 billion, a decrease of 32% compared to the same period last year. However, the Company managed to maintain its EBITDA margin at 25 percent, compared to 28 percent in the first quarter of last year.

As of March 31, 2018, the Company’s mature area reached 79,101 hectares out of a total planted area of 90,288 hectares, with an average age of about 9.6 years.

For the wood products business segment, the Company recorded sales volumes for engineered flooring of 270 thousand m2 in the first quarter of 2018. While this was 19% below the same period last year, the average selling price of engineered flooring rose by 9%, as production has been shifting to higher value-added products.

The Company’s panel sales volume in the first quarter of 2018 was 19 thousand m3, 10% higher compared to the same period last year, with the average selling price also rising by 12% following improvements in market demand.

ABOUT THE COMPANY

PT Dharma Satya Nusantara Tbk was established on 29 September 1980, and is active in the palm oil industry and wood products manufacturing. The Company currently operates 13 estates and 7 palm oil mills with a total capacity of 450 tons per hour. In the wood product segment, the Company operates wood processing plants in Central Java, which produce panel products and engineered flooring.

CONTACT PERSON

Paulina Suryanti
Corporate Secretary
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Jakarta Industrial Estates Pulogadung
Jakarta 13930, Indonesia
Email: corporate.communications@dsngroup.co.id