DSNG Still Booked Profit Of Rp 178 Billion Amid Bleak CPO Price
JAKARTA, APRIL 8, 2020 – PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG”) has managed to generate a profit of Rp 178 billion in 2019 amid a bleak CPO price environment throughout the year. The total profit decreased by 58% compared to 2018 of Rp 427 billion.
The Company's financial performance in 2019 was substantially affected by the weak CPO price, as the CPO price has just only rebounded in the fourth quarter of 2019. The Company’s 2019 CPO ASP was posted at Rp 6.5 million per ton, 10% lower than 2018 ASP of Rp 7.2 million per ton.
President Director of the Company, Andrianto Oetomo, explained that the 46% increase in CPO sales volume has boosted the Company’s financial performance in 2019. This increase of volume was driven by the additional CPO production from two plantation companies which was acquired at the end of 2018 as well as the increasing area of mature plantations.
“Despite such significant increase in our CPO sales volume, the depressed CPO price has been dragging our 2019 revenue achievement down to increase by only 21% against last year” Andrianto Oetomo said in a statement.
In 2019, the Company recorded total revenue of Rp 5.74 trillion. Out of this amount, the palm oil segment generated Rp 4.74 trillion, representing around 83% of total revenue, while the wood products segment contributed around of Rp 1 trillion.
The 2019 EBITDA was Rp 1.31 trillion, with an EBITDA margin of 23%, compared to 2018 of Rp 1.33 trillion, with an EBITDA margin of 28%.
“We put forth our best efforts to maintain the EBITDA margin above 20% under a bleak CPO price environment by consistently achieving operational excellence and high productivity,” he said.
Meanwhile, responding to the question on the impact of the Corona virus pandemic on the Company's performance, Mr Oetomo was of the view that this situation would certainly lead into a disruption to both global and domestic economies, and unavoidably the Company’s business.
“We will closely monitor the situation regarding COVID-19, evaluate and actively respond to mitigate its adversely impact on our financial and operational performances,” he said.
In 2019, the Company’s total planted area reached 112,450 hectares, with an average age of about 9.9 years old. Out of this, 101,799 hectares were mature estates.
This year, the Company will continue its new planting program and construct two new Palm Oil Mills (POMs) to accommodate the increasing production and mature area. As of December 31, 2019, the Company has 10 POMs with total production capacity of 570 tons FFB per hour.
The Company’s CPO production in 2019 reached 610 thousand tons, an increase of 25% against 2018. The two newly acquired plantations contributed around 95 thousand tons of CPO or 15% of the Company's total CPO production.
Meanwhile, the wood products segment sold 97 thousand m3 in 2019 for panel products, 15% higher than 2018, with panel revenue was also higher by 13% to Rp 572 billion. On the other hand, sales volume of engineered flooring products decreased by 15% to 932 thousand m2 following the declining demand from the export markets. Overall, the wood products segment still generated positive contribution to the Company’s income.
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 112,450 hectares of planted areas of palm oil plantations and 10 palm oil mills with a total capacity of 570 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