DSNG recorded net sales of Rp 4.43 trillion in 2015
JAKARTA, MARCH 30, 2016 - PT Dharma Satya Nusantara Tbk (DSNG) in 2015 posted net sales of Rp 4.43 trillion, 9.7% lower compared to 2014 net sales of Rp 4.90 trillion. The decrease was due primarily to lower Crude Palm Oil (CPO) average selling prices in 2015.
Sales contributed by the palm oil segment reached Rp 3.05 trillion, or about 69% of total net sales, while wood products contributed Rp 1.37 trillion, or about 31% of total net sales.
Net sales from palm oil fell by 13.3% compared to the previous year, while net sales from wood products decreased by 0.2% from the previous year. During 2015, the Company’s CPO average selling price was Rp 6.86 million per ton, or 17.1% lower compared to the average selling price of Rp 8.27 million per ton for CPO in 2014.
President Director of DSNG, Djojo Boentoro, said that during 2015 the Company was able to increase CPO production volume , despite the drought which negatively affected the production of fresh fruit bunches (FFB) of the Company, in both nucleus and plasma operations.
"The CPO average selling price of the Company in 2015 fell by 17.1%, impacting the Company's net income. In addition, the slowdown in the global economy also hit the Company's wood products export markets, "said Djojo Boentoro.
The decline in CPO prices thus net sales resulted in lower EBITDA. The Company booked EBITDA of Rp 1.03 trillion in 2015, 22,4% lower than 2014.
In 2016, DSNG is optimistic that CPO prices will improve, given that the effects of drought will likely pressure FFB production in the first quarter of 2016.
In 2015, DSNG CPO production reached 407 thousand tons, for an increase of 4.2% compared to 2014, which reached 391 thousand tons. Total FFB production of 1.49 million tons showed an increase of 8.2% compared to production in 2014 of 1.38 million tons.
The company also maintained a palm oil extraction rate (OER) of 23.6% in 2015, slightly below the 2014 OER of 23.9%. Palm oil free fatty acid (FFA) levels improved from 2.93% in 2014 to 2.57% in 2015.
In wood products, DSNG sold 179.6 thousand m3 of panels in 2015, or a drop of 11% compared to 2014. Engineered door sales volume reached 61.9 thousand units, increasing by 20.4% compared to 2014. Meanwhile, engineered flooring sales volume decreased by 4.3% from 1.15 million m2 in 2014 to 1.10 million m2 in 2015.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk (DSN Group) was established on September 29, 1980. DSN Group is engaged in the palm oil industry and wood products. Currently, the Company has oil palm plantations which are mostly located in East Kalimantan. In the wood product industry, the Company has a wood-processing plant in East Java and Central Java, which manufactures wood panels, engineered door and engineered flooring.
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Kawasan Industri Pulogadung
Jakarta 13930, Indonesia