DSNG CPO Production Increased by 4.2% to 407 Thousand Tons in 2015
JAKARTA, 2 FEBRUARY 2016 – Total Crude Palm Oil (CPO) production of PT Dharma Satya Nusantara Tbk (DSNG) in 2015 reached 407 thousand tons, an increase of 4.2% compared to 391 thousand tons in 2014, despite the dry conditions in the second half of the year.
The increase in production is due to the higher volume of fresh fruit bunches (FFB) processed by the Company during 2015. During 2015, DSNG produced 1.49 million tons of FFB, an increase of 8.2% compared to 1.38 million tons in 2014. FFB harvested from nucleus estates grew by 7.5% to 1.35 million tons, compared to the 2014 harvest of 1.26 million tons.
FFB processed reached 1.73 million tons, higher by 5.5% compared to 1.64 million tons in 2014. The company also maintained the oil extraction rate (OER) at the level of 23.6% in 2015, a slight decline compared to 2014, with an OER of 23.9%. The fatty acid level, however, improved from 2.93% in 2014 to 2.57% last year.
During 2015, CPO sales volume reached 410 thousand tons, or 3.9% higher compared to sales in 2014, which reached 394 thousand tons. The average selling price of the Company's CPO declined by 17.1 % to approximately of Rp 6.86 million per ton, compared to the average selling price of CPO in 2014 of Rp 8.27 million per ton.
As of end of December 2015, the Company's total planted area was 90,083 hectares, with 69,291 hectares in nucleus estates and the remainder in plasma estates. Of these, 58,044 hectares were mature area, with an average age of 6.6 years.
In the wood products segment in 2015, DSNG saw a decline in commodity wood panel sales volume of 11% compared to 2014, to 179.6 thousand m3. Sales volume of engineered doors, however, reached 61.9 thousand units, up by 20.4% compared to 2014. Engineered flooring sales volume also fell slightly, from 1.15 million m2 in 2014 to 1.10 million m2 in 2015.
The average selling price of the Company's wood products, however, have broadly improved. Wood panel prices rose from Rp 4.37 million per m3 in 2014 to Rp 4.68 million per m3 last year.
The average selling price for engineered doors rose from Rp 1.24 million per unit in 2014 to Rp 1.25 million per unit last year, and the average price for engineered flooring increased by 11% from Rp 370 thousand per m2 in 2014 to Rp 411 thousand per m2 in the past year.
The increase in the average price of wood products is due to the Company's focus on the higher value added products and impact of the higher exchange rate (US dollar against rupiah) in 2015.
ABOUT DSN GROUP
DSN Group was established at September 29th 1980. DSN Group started its business in woods industry. In mid 1990s, Company diversified its operation and started land acquisition started the palm oil cultivation in 2001, and also commercialized productions from CPO and Palm Kernel Oil in 2002.
FOR MORE INFORMATION
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Kawasan Industri Pulogadung
Jakarta 13930, Indonesia
Email : email@example.com