Third Quarter 2019, DSNG Revenue Rose by 19% Amid Lower CPO Price
JAKARTA, OCTOBER 31, 2019 – PT Dharma Satya Nusantara Tbk posted revenue of Rp 4 trillion in the third quarter of 2019, increased by 19% against the same period last year, as the higher sales volume was compensated for by a lower average selling price.
From January to September 2019, the Company’s CPO sales volumes were recorded at 464 thousand tons, 53% higher than the same period last year, around 20% out of which were contributed by the newly acquired estates at the end of last year.
On the contrary, the Company’s CPO average selling price fell by 16% yoy from Rp 7.5 million per ton last year to Rp 6.3 million per ton. During the nine months of 2019, palm oil segment contributed around 82% of the Company’s total revenue.
The Company booked EBITDA of Rp 845 billion by the end of third quarter of 2019, decreased by 7% compared to the same period last year, with an EBITDA margin of around 21%. Meanwhile operating profit was recorded at Rp 459 billion, decreased by 24% than the amount last year.
President Director of the Company, Andrianto Oetomo, said the lower CPO average selling price in 2019 has adversely affected 2019 financial performance, although during the last two months, CPO price started to show a modest upward trend.
“We hope that CPO price will continue to hike until the end of the year, as a result of the implementation of B20 policy this year and the government’s plan to adopt the B30 program next year, which are expected to drive domestic CPO demand," Andrianto Oetomo said in the Company’s statement.
Operation-wise, the Company’s CPO production was recorded at 419 thousand tons by the third quarter of 2019, increased by 27% than the same period last year, predominantly driven by the addition of mature areas and the contribution of two newly acquired estates at the end of last year.
“The estates that we acquired in December 2018 have contributed 20% of 2019 CPO sales volume, even though they have not yet generated an optimum margin contribution since they are currently still undergoing the revitalization program,” Andrianto Oetomo said.
In the third quarter this year, the Company has inaugurated a new Palm Oil Mill (POM) in West Kalimantan, with a capacity of 30 tons of Fresh Fruit Bunches (FFB) per hour. With this new addition, the Company has now been running 10 POMs with a total capacity of 540 tons of FFB per hour.
Our wood product business segment continued to contribute, driven mainly by wood panel. Throughout nine months of 2019, panel product showed a significant improvement in performance with both sales volume and average selling price increased by 16% following the increasing demand from Japan market.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk was established on September 29, 1980 and has engaged in the palm oil and wood products industry since. The Company currently has 108,411 hectares of planted areas of palm oil plantations and 10 palm oil mills with a total capacity of 540 tons per hour, that processes Fresh Fruit Bunches (FFB) into Crude Palm Oil (CPO). As for the wood product business segment, the Company operates a wood processing plant in Central Java, which produces panels and engineered floorings.
FOR MORE INFORMATION
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR/3B
Kawasan Industri Pulogadung
Jakarta 13930, Indonesia