First Half 2018, DSNG Produced 697 Thousand Tons FFB
JAKARTA, 31 JULY 2018 – Through June 2018, PT Dharma Satya Nusantara Tbk (“The Company”, “DSNG”) produced 697 thousand tons of Fresh Fruit Bunches (FFB), a decreased by 16% compared to the same period last year.
Nevertheless, in the last three months, the FFB production has shown an improvement as an impact of estates yield recovery after pattern changes of harvesting in the previous quarter due to the post-effects of El-Nino.
In the second quarter of 2018, FFB production was recorded at 401 thousand tons, an increase of 35% compared to the first quarter of 2018.
The Company's CPO production in the first half of this year was recorded at 187 thousand tons, a decrease of 12% compared the same period last year. Nevertheless, CPO production in the second quarter increased by 32% compared to the first quarter, in line with the increased of FFB processed.
President Director of the Company, Andrianto Oetomo, said entering the second half of this year the Company's operational performance shows a significant improvement as the estates yields recovered after the abnormal harvesting pattern in the previous quarter due to the post impact of El-Nino.
“We are optimistic that in the second half, the estates performance will return to normal, because the yield began to be recovered in the second half,” he said.
The Company, however, anticipates the fluctuation of CPO average selling prices during this year, which has potential impact to financial performance of the Company.
As of June 2018, the Company’s CPO average selling price was recorded at Rp 7.8 million per ton, 6% lower compared to the same period last year.
In the first half of 2018, the Company also recorded an improvement of Oil Extraction Rate (OER) to 23.71% compared to the same period last year of 22.27%. The aggregate level of Free Fatty Acid (FFA) also improved to 2.77% in this semester, compared to 3.17% in the same period last year.
Meanwhile, in wood product business segment, our panel product sales volume increase of 21% to 39 thousand m3, with average selling price also14% higher to Rp 5.8 million per m3. While sales volume of engineered flooring products decreased by 12% to 524 thousand m2. The engineered flooring average selling price, however, rose by 7% to Rp 410 thousand per m2.
ABOUT THE COMPANY
PT Dharma Satya Nusantara Tbk was established on 29 September 1980, and is active in the palm oil industry and wood products manufacturing. The Company currently operates 13 estates and 7 palm oil mills with a total capacity of 450 tons per hour. In the wood product segment, the Company operates wood processing plants in Central Java, which produce panel products and engineered flooring.
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Pulogadung Industrial Estates
Jakarta 13930, Indonesia