DSNG Performance hit by lower CPO price
PT Dharma Satya Nusantara Tbk ("the Company") today announced the Consolidated Financial Statements of the Company and its subsidiaries for the period ended September 30, 2015. Concurrently, the Company also released the Operational Performance Report in the Investor Newsletter for the first nine months of 2015.
In the first nine months of 2015, the Company recorded net sales of Rp 3.3 trillion, a decreased by 11.4% compared to the same period last year. The decrease hit by weakening of the average selling price of CPO compared to the last year.
The company's CPO production during January-September 2015 fell slightly 1.0% to 285.9 thousand tons compared to nine months last year that reached 288.7 thousand tons. However, quarterly performance of CPO production showed a positive trend. In the third quarter CPO production rose by 3.9% to 105.8 thousand tons compared to the second quarter that reached 101.8 thousand tons.
In addition, the average selling price of CPO also decreased by 14.7% from Rp 8.5 million per tonne for nine months last year to only Rp 7.3 million per ton this year.
President Director of the Company, Dojo Boentoro, said the net revenues are still dominated by the palm oil industry business segment, thus weakening the CPO price has contributed to the Company's financial performance slow down during the third quarter of this year.
Net sales from palm oil business in the first nine months of this year reached Rp 2.2 trillion, decreased by 17.7% compared to last year of Rp 2.7 trillion. While the net sales of the wood product industry in January-September 2015 reached Rp 1.1 trillion, an increase of 5.4% compared to last year.
The decrease in net sales has impacted to the Company's gross profit for the third quarter at Rp 785.8 billion, 37.4% lower compared to the same period last year. Operating profit also fell by 48.1% to Rp 430.4 billion compared to the same period last year.
In term of operational performance, during the first nine months of the year, the Company Fresh Fruit Bunch (FFB) production reached 1.1 million tons, increase of 5.3% compared to the same period last year. It was consisting of the nucleus FFB production reached 964.8 thousand tons, an increase of 4.9% compared to last year. While the FFB production of plasma estates reached 93.8 million tons, 10.6% higher compared to last year.
From the mill productivity side, the Company was still able to maintain Oil Extraction Rate (OER) above 23%, that was reached of 23.3%, during January-September 2015. In the third quarter, OER level rose to 24.2% compared to the second quarter that reached 23.3%. Meanwhile palm oil fatty acid levels for nine months, down from 2.8% to 2.6%, which indicates an increase in the quality of the Company's CPO production.
As of September 2015, the Company's total planted area reached 87.025 hectares, comprising the nucleus estates reached 67 530 hectares and the plasma estates of 19.495 hectares, with an average age of planting area of 6.9 years.
As for the wood product industry, in January-September 2015 the Company recorded sales volume of panel product reached 145.3 thousand m3, decreased slightly by 3.0% compared to the same period last year. The average selling price of panel products in the period, however, rose by 7.1% to Rp 4.6 million per m3 compared to the same period last year.
For doors engineered sales volume rose by 15.5% to 43.6 thousand units, with an average selling price also rose by 11.2% to Rp 1.3 million per unit. For engineered flooring sales volume fell 7.1% to 816.0 thousand m2, but the average selling price rose 14.8% to Rp 410 thousand per m2.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk is a company engaged in the palm oil industry and wood processing industry. The Company was established on 29 September 1980. The Company initially engaged in the timber industry. In the mid-1990s, the Company diversified its business into plantations and the palm oil industry in East Kalimantan. On June 14, 2013, the Company listed its shares on the Indonesia Stock Exchange, with ticker code DSNG.
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR / 3B,
Pulogadung Industrial Estate
Jakarta 13930, Indonesia
Phone: + 62-21-4618135. Fax: + 62-21-46834865