NEWS

Performance 2017: CPO Sales of DSNG rose by 31.5%

Bisnis.com, JAKARTA - PT Dharma Satya Nusantara Tbk. (DSNG), a palm oil and wood product listed company, recorded a production increase in 2017 in line with conducive weather conditions.

 
DSNG Management reported, last year the Company's performance increased due to production recovery after El Nino impact hit in 2015. As of December 2017, fresh fruit bunches (FFB) production reached 1.55 million tons, an increase of 41.6% year on year (yoy) compared to 1.09 million tons in previous year.
 
Of this, the FFB production of nucleus rose by 41.3% yoy to 1.38 million tons compared to 2016 of 977,629 tons. Meanwhile the plasma contribution reached 115,308 tons in 2017, an increase of 43.9% yoy from 43,274 tons previously.
 
"The peak of TBS production occurs in the second quarter of 2017 of 444,002 tons, and then tends to decline slightly every quarter," said management through a press release on Thursday (11/1/2018).
 
The mill productivity in last year also increased. FFB processed rose by 34.3% yoy to 1.75 million tons from 1.31 million tons previously. CPO production also increase of 29.4% yoy to 403,638 tons compared to 2016 of 311,952 tons.
 
Increased production is also in line with the sales growth. In 2017, CPO sales volume increased by 31.5% yoy to 457,973 tons compared to 348,391 tons in the previous year.
 
The palm kernel (PK) sales volume fell 9% yoy to 10,067 tons from 2016 of 11,067 tons. Meanwhile the sales volume of kernel oil or PKO jumped by 54.7% yoy to 27,003 tons from 17,451 tons compared to the year prior.
 
According to management, DSNG's performance benefited from the CPO average selling price which reached Rp8.1 million per ton in 2017,  8% higher yoy from the previous year of Rp7.5 million ton.
 
That means the Company recorded the revenue from CPO of Rp3, 71 trillion in last year, an increase from 2016 of Rp2, 61 trillion.
 
As of December 2017, the company has planted area, including nucleus and plasma,  of ​​90,288 hectares with an average age of 8.6 years. The mature planted area reaches 72,345 hectares.
 
"We are continuing to review the inventory of existing land banks for future plantings," he added.
 
Wood Product
 
In wood product industry, the Company has a wood processing plant in East Java and Central Java that produces wood panels, engineered doors, and engineered flooring.
 
Throughout 2017, sales of wood panels decreased by 23.4% yoy to 70,679 cubic meters (m3) from 92,235 m3. However, the average selling price increased 8.4% to Rp 5, 27 million per m3 from 2016 worth Rp4, 86 million per m3.
 
Sales of engineered doors increase of 10.8% yoy to 66,877 units from 59,447 units in previous year. However, there was a decrease in average selling price in 2017 to Rp990,000 per unit from the previous year of Rp1.06 million per unit.
 
Meanwhile, sales of engineered flooring last year decrease slightly of 0.4% yoy to 1.249 million m2 from 1.254 million m2. The average selling price of this product increased by 4.5% yoy to Rp390.000 per m2 from the previous year of Rp370.000 per m2.
 
Source: Bisnis.com