In 2018, DSNG Recorded Revenue of Rp 4.8 Trillion
JAKARTA, MARCH 29, 2019 – PT Dharma Satya Nusantara Tbk (the “Company”, “DSNG”) posted revenue in 2018 of Rp 4.8 trillion, decreased by 8% compared to 2017. This was primarily driven by a significantly lower CPO average selling price in 2018 of Rp 7.2 million per ton against Rp 8.1 million per ton in 2017.
CPO sales volume of 455 thousand tons was only short by 3 thousand tons than last year, despite delivery delays following the congestion on CPO transport vessels since mid-2018, that hampering potential sales volume.
The palm oil business segment contributed around 79% of total revenue, while the wood product business generated the rest. The revenue of palm oil segment in 2018 fell by 12% to Rp 3.8 trillion, while revenue of wood products rose by 14% to Rp 989.6 billion.
The decrease in revenue has unavoidably driven the Company's gross profit to fall by 11% to Rp 1.5 trillion. Nevertheless, the Company was still able to maintain a gross profit margin of 32%, a similar level as 2017 margin of 33%. EBITDA-wise, the margin was 28% with the amount generated of Rp 1.33 trillion, 14% lower compared to 2017.
In 2018, the Company was obliged to estimate the fair value of its biological assets FFB (Fresh Fruit Bunches) following the implementation of PSAK 69. This implementation has let the Company recognize a loss of changes in the fair value of biological assets of Rp 26.5 billion and booked a net profit of Rp 427.2 billion after tax, a decrease of 26% compared to 2017, with net profit after tax margin of 9.0%. In the absence of such PSAK 69 implementation, the Company’s net profit after tax would be Rp 453.7 billion and a margin of 9.5%.
During 2018, the company produced 488 thousand tons of CPO, an increase of 21% than 2017 due to the higher production of FFB by 20% to 1.85 million tons compared to the production in 2017 of 1.55 million tons. Of these, production from nucleus estates reached 1.59 million tons, 15% higher compared to 2017.
The increase of FFB production was due to higher productivity in the second semester of 2018 as our plantation yield started to recover from the prolonged El-Nino’s effect.
The Oil Extraction Rate (OER) was maintained at the level of 23.59%, 3% higher than the previous year, with level of CPO free fatty acid (FFA) of 2.77%.
To continuously demonstrate the Company’s commitment as a green producer, the Company has been developing a methane capture plant to convert the Palm Oil Mill Effluent (POME) into electricity (capacity of 1.2MW) and compressed bio-methane gas (280m3/hour) to reduce and/or replace the consumption of diesel fuel in mills and emplacements. The groundbreaking of this plant was held in December 2018 and expected to start commission in the first quarter of 2020.
As of the end of December 2018, total planted area of the Company has reached 108,000 hectares, with mature area reaching 96,118 hectares, following the acquisition of two plantation companies of Bima Palma Group in East Kalimantan on December 12, 2018.
As for wood products, the Company sold wood panels of 84 thousand m3 in 2018, an increase of 19% compared to the previous year, with the average selling price increasing by 15% to Rp 6.1 million per m3, than 2017. On the other hand, the engineered flooring production fell by 13% to 1.1 million per m2. Nevertheless, the average selling price rose by 7% to Rp 418 thousand per m2 in 2018.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk was established in 29 September 1980, and has engaged in the palm oil and wood products industry. The Company currently has 108.411 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 produces panels and engineered floorings.
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Pulogadung Industrial Estates
Jakarta 13930, Indonesia