In 2022, DSNG’s CPO Production Increased by 17%

JAKARTA, 27 JANUARY 2022 – PT Dharma Satya Nusantara Tbk (“the Company,” “DSNG”) recorded a total Crude Palm Oil (CPO) production of 640 thousand tons throughout 2022, increased by 17% compared to total CPO production in 2021. This result verified the return of the typical production pattern starting the second semester of 2022 after experiencing a declining trend for the last two consecutive years following the 2019 El Nino.

In 2022, DSNG’s total Fresh Fruit Bunches (FFB) production reached 2.2 million tons, 14% higher against 2021, with the FFB yield of nucleus plantations getting 22 tons per hectare.

The President Director of DSNG, Andrianto Oetomo, revealed that the productivity of DSNG plantations in 2022 had improved significantly, marked by an increase in FFB production starting the second semester.

“Throughout 2022, our FFB production followed an upward trend, slightly peaking in the fourth quarter. And we are quite optimistic that operational performance in 2023 will also be better off than 2022,” he said, explaining operational achievements throughout 2022.

Nonetheless, DSNG also anticipates the likelihood of a high rainy season in 2023, which may affect the extraction rate and the Free Fatty Acid (FFA) level. Throughout 2022, the OER was at 22.76%, with an FFA level above 3% due to high rainfall in the second semester hampering the FFB and CPO evacuation and transportation process.

In 2022, DSNG generated a 17% increase in CPO sales volume to 640 thousand tons. In addition, CPO’s average selling price (ASP) also rose by 21% to Rp 11.2 million per ton, against 2021 of Rp 9.2 million per ton, following a shortage of supply of global edible oil.

DSNG also recorded an increase in Palm Kernel Oil (PKO) sales volume in 2022 by 26% to 39 thousand tons, with the ASP also increasing by 6% to Rp 17.5 million per ton against 2021 of Rp 16.5 million per ton.

“With the increase in sales volume and ASP for both CPO and PKO, we are optimistic our financial performance in 2022 will be better than 2021, considering that the palm oil segment contributes around 80% of DSNG’s total revenue,” he said.

In 2023, DSNG will construct one new Palm Oil Mill (POM) in West Kalimantan with a capacity of 30 tons of FFB per hour starting in the second quarter of 2023 with a commissioning expectation in 2025.

Once the new POM operates, DSNG will have 15 POMs with a total production of around 705 tons per hour by the end of 2025.

Meanwhile, DSNG’s wood product business also provided a solid contribution throughout 2022 following an improved operational performance, particularly for panel products. In 2022, panel sales volume increased by 6%, with the ASP jumped by 21% following a higher demand from Japan market and a mixed product strategy for value-added panel products.

As for the engineered flooring segment, sales volume decreased by 2% to 1,117 thousand m2 due to slowing demand from Canada and the United States. However, the average selling price was 6% higher than the previous year.

ABOUT PT DHARMA SATYA NUSANTARA Tbk

PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and engages in palm oil and wood products businesses. Currently, DSNG has 112.8 thousand hectares of planted area and 12 palm oil mills which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 675 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings, with an installed capacity of 150,000 square meters a month for engineered flooring, and 9,000 cubic meter per month for panels.

FOR MORE INFORMATION

Paulina Suryanti
Corporate Secretary
Jl. Rawa Gelam V Kav. OR / 3B
Kawasan Industri Pulogadung (Pulogadung Industrial Estate)
Jakarta 13930, Indonesia
Email: corporate.communications@dsngroup.co.id