In 2018, DSNG CPO Production Increased by 21%
JAKARTA, JANUARY 25, 2019 - PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG”) today announced the achievement of operational performance for palm oil and wood product segment. In 2018, the Company's Crude Palm Oil (CPO) production reached 488 thousand tons, an increase of 21% compared to 2017.
The increase was due to the higher production of Fresh Fruit Bunches (FFB) by 20% to 1.85 million tons compared to 2017 of 1.55 million tons. Of these, production from nucleus estates reached 1.59 million tons, 15% higher compared to 2017.
President Director of the Company, Andrianto Oetomo, said that the increase of FFB production was due to the higher productivity in the second semester of 2018 compared to the first semester yield recovery from the El-Nino’s effect prolonged.
In addition, Palm Kernel (PK) production in 2018 also rose by 26% to 82 thousand tons while Palm Kernel Oil (PKO) increased by 21% to 29 thousand tons.
The Oil Extraction Rate (OER) was maintained at to the level of 23.59%, 3% higher than previous year, with level of CPO free fatty acid (FFA) of 2.77%.
Despite an increase in production, the Company's CPO sales volume in 2018 decreased slightly around 0.7% to 455 thousand tons, with the average selling price also lower by12% to Rp 7.2 million per ton.
“The decrease in sales volume was due to delivery delay as an impact of the congestion on CPO transport vessels since mid-2018, which hampered the sales volume,” Andrianto explained.
As of the end of December 2018, total planted area of the Company reached 108,411 hectares, with mature area reached 96,118 hectares, following the acquisition of two plantation companies of Bima Palma Group in East Kalimantan on December 12, 2018.
As for the wood product, the Company produced wood panels of 84 thousand m3 in 2018, an increase of 19% compared to the previous year, with the average selling price of Rp 6.1 million per m3, increased by around 15% than 2017.
On the other hand, the engineered flooring production fell by 13% to 1.1 million m2. Nevertheless, the average selling price rose by 7% to Rp 420 thousand per m2.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk was established on 29 September 1980, and engaged in palm oil and wood products industry. The Company currently has 108.410 hectares planted areas and 9 palm oil mills with the total capacity of 510 tons per hour. As for wood product segment, the Company operates wood processing plants in Central Java, which produce panel and engineered flooring.
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Pulogadung Industrial Estates
Jakarta 13930, Indonesia