1st Quarter 2020, DSNG Booked a Profit of Rp 82 Billion
JAKARTA, APRIL 30, 2020 - PT Dharma Satya Nusantara Tbk (“Company”, “DSNG”) posted a profit of Rp 82 billion for the first quarter of 2020, an increase of 25% compared to the same period last year as a result of a higher CPO average selling price by 35% against the first quarter last year.
The Company’s CPO average selling price in the first quarter of 2020 rose to Rp 8.3 million per ton against Rp 6.1 million per ton last year, following a lower CPO inventory level in Malaysia and Indonesia, combined with a higher demand for the B30 biodiesel mandatory policy.
Consequently, the revenue posted for the first three months of 2020 were Rp 1.59 trillion, higher by 16% than the same period last year, largely contributed by revenue from the palm oil segment of Rp 1.32 trillion or around 83 % of total revenue.
The President Director of the Company, Andrianto Oetomo, mentioned that, the financial performance of the Company in the first quarter of this year was boosted by a significant increase in CPO price, which had rallied since the fourth quarter of last year and extended into the early part of this year, as a response to a lower CPO inventory level in both Malaysia and Indonesia.
“Our financial performance in the first quarter of this year is benefiting from a much higher CPO price. Nevertheless, we are all aware that the outbreak of COVID-19 has started to show its adversely impact on both Indonesia and global economies in this second quarter. Hence, we must remain vigilant while monitoring the day-to-day development, to enable us taking prompt actions to mitigate any harmful risks to our businesses. We are also actively supporting the Government in dealing with this COVID-19 pandemic through the implementation of all necessary procedures relating to health and safety into our working environment as well as conducting some CSR activities in relation to COVID-19 for our surrounding communities “, Andrianto Oetomo said in the statement.
In 1Q2020, the Company recorded an EBITDA of Rp 436 billion with a margin of 27%; increased by 37% from the first quarter of the year earlier, with a margin of 23%.
In regards to operational performance, the Company produced 153 thousand tons of CPO in 1Q2020, increased by 18% than CPO production in 1Q2019. The palm oil mill performance has also improved as the oil extraction rate increased from 23% in 1Q2019 to 24% in 1Q2020.
Meanwhile, CPO sales volume in 1Q2020 dropped by 14% to 143 thousand tons as against 166 thousand tons in 1Q2019 due to the absence of high inventory stock as per the beginning of 2019 combined with some shipment delays at the end of March 2020.
As for the wood product segment, the Company sold 26 thousand m3 of panel products and 239 thousand m2 of engineered flooring during the first three months of 2020, increased by 16% and 4%, respectively against the same period in the previous year, following higher demands from export destination countries, particularly 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 ever 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 process Fresh Fruit Bunches (FFB) into Crude Palm Oil (CPO). As for the wood product business, the Company operates two wood processing plants in Central Java, which produces panels and engineered floorings.
For Further Information, Please Contact:
Paulina Suryanti, Corporate Secretary
PT Dharma Satya Nusantara Tbk
Sapta Mulia Center
Jl. Rawa Gelam V Kav. OR/3B
Kawasan Industri Pulogadung