In Quarter III 2018, DSNG FFB Production Returns to Normal
JAKARTA, OCTOBER 30, 2018 - Fresh Fruit Bunches (FFB) production of PT Dharma Satya Nusantara Tbk (“DSNG”, “the Company”) up to the third quarter of 2018 was recorded at 1.2 million tons. The production was even slightly higher than the same period last year, indicating the recovery of FFB production pattern, since hit by the continued impact of El-Nino in 2016 and 2017.
Morever, FFB production for the third quarter (July-September) has increased significantly by 31% from the second quarter (April-June) this year, demonstrating that FFB yield has returned to its normal level.
The Company’s President Director, Andrianto Oetomo, mentioned that the Company's estates productivity has been significantly recovered in the third quarter and began to exceed the production level in 2017, which was marked by the significant increase in FFB production in the third quarter this year compared to the previous quarter.
“By the end of this year, we are optimistic the Company's FFB production will still increase from the previous year because our yield productivity pattern has returned to normal and mimicking the 2015 upward harvest trend,” Andrianto said in his statement.
According to Andrianto, FFB harvest pattern in the previous year was following the patterns of 55% in the first semester and 45% in the second semester. This year, however, the pattern has been reversed to 40% in the first semester and 60% in the second semester.
Through September 2018, the Company has also been successful in increasing the oil extraction rate (OER) to the level of 23.70%, higher compared to the same period last year of 22,83%. In addition, the Company was also able to maintain the level of aggregate Free Fatty Acid (FFA) at level below 3%.
In the wood product segment, the Company recorded a 20% increase in panel production to 61 thousand m3, with the panel average selling price also increased by15% to Rp 5.9 million per m3.
Nevertheless, the decline in CPO sales volume and the lower CPO average selling price throughout this year has hit the Company's financial performance. The Company's revenue of Rp 3.3 trillion for nine months of 2018, decreased by 13%. In terms of revenue, the palm oil segment contributed around 79%.
The CPO average selling price until the third quarter of 2018 reached Rp 7.5 million per ton, 7% lower compared to the average selling price last year of Rp 8.1 million per ton.
As a result, the Company's EBITDA also decreased by 19% to Rp 909 billion, with an EBITDA margin of 27%. Meanwhile comprehensive income for the current period was recorded at Rp 281 billion, decreased by 20% compared to the same period last year.
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