DSNG Posted First Half Net Sales of Rp 1.86 Trillion
JAKARTA, 29 JULY 2016 - PT Dharma Satya Nusantara Tbk (DSNG) posted net sales of Rp 1.86 trillion in the first half of 2016, 17.3% lower compared to the same period last year. The decrease was due to the drop in CPO production from the continuing impact of the recent El Nino.
The Company’s Fresh Fruit Bunch (FFB) production in the first six months of the year only reached 507.3 thousand tons, a 24.8% decrease compared to the 674.3 thousand tons achieved in same period last year as the drought severely affected productivity.
As a result, the Company’s CPO production in the first half of 2016 declined by 17.9% to 147.8 thousand tons compared to 180.1 thousand tons in 2015.
President Director of DSNG, Andrianto Utomo, said the El Nino that began in 2015 has continued to suppress the productivity of our palm oil estates in the first and the second quarter of this year. The impact on the operational and financial performance of the Company in the first half of the year was also shared by many other palm oil operations.
"Through the first half of this year, our CPO average selling price is still below the same period last year. In addition, the slowdown of both our CPO production and wood product sales volume have influenced the financial performance of the Company, "he said.
The CPO average selling price of the Company in January - June 2016 reached Rp 7.10 million per ton, 5.5% lower compared to the average selling price in January-June 2015 of Rp 7.51 million per ton. Nonetheless, in the past two months, the CPO average selling price has started to recover.
In March 2016, the CPO average selling price of the Company increased to Rp 8.19 million per ton compared to the ASP in March 2015 of Rp 7.16 million per ton. In June 2016, the CPO average selling price had risen further, to Rp 8.23 million per ton, compared to Rp 7.33 million per ton in June 2015.
Through June 2016, the Company improved the Oil Extraction Rate to 24.24% compared to just 22.83% in the first six months of last year.
Looking at first half sales by business segment, the Company’s palm oil products posted net sales of Rp 1.32 trillion, or a decline of 12.5% compared to the first half of last year. At the same time, net sales of wood products fell by 27.1% to Rp 535.0 billion compared to the same period last year.
In the first half of this year, the sales volume of panel products fell by 47.0% to 56.37 thousand m3, while the average selling price of panels rose by 3.5% to Rp 4.72 million per m3. Engineered door sales volume rose by 7.0% to 28.8 thousand units, while the average selling price fell by 30.6% to Rp 1.02 million per m2. Engineered floor sales volume rose by 20.1% to 621.0 m2, however the average selling price fell by 4.3% to Rp 390 thousand per m2.
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 located in East, Central and West 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