DSNG YTD Revenue Rose by 10 Percent
JAKARTA, OCTOBER 27, 2020 - PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG") booked a revenue of Rp 4.38 trillion, an increase of 10% compared to the same period last year, following higher average CPO selling price.
During the first nine months of this year, the palm oil segment recorded revenue of Rp 3.67 trillion, an increase of 14% against the same period in 2019. Palm oil contributed around 84% of the Company’s total revenue.
The Company’s President Director, Andrianto Oetomo, said that the CPO average selling price for the nine months of 2020 reached Rp 7.7 million per ton, 22% higher than the same period last year of Rp 6.3 million per ton.
“The high average selling price of CPO in 2020, particularly during the first and third quarters of 2020, has driven the increase in revenue by 10% despite the CPO sales volume declined by around 7% against last year to 433 thousand tons,” said Mr Oetomo in the Company’s official statement explaining the 3rd quarter of 2020 performance.
Our YTD 2020 FFB production was lower by 10% this year as the adverse impact of mild El Nino occurred in 2019 has been seen in the drop of the third quarter FFB production of oil palm plantations across Indonesia, with oil palm plantations in East Kalimantan experienced the worst drop.
The sharp decline of more than 20% in the third quarter FFB production against the second quarter this year has resulted in a lower CPO production in the third quarter 2020, although YTD-wise, our CPO still increased by 6% to 442 thousand tons due to the improving OER from 23.39% last year to 23.86% and more external FFB being processed as our newly added mill capacity of 60 tons/hour in Q3-2019 has now been fully up and running.
The revenue generated by our wood product business during the first nine months of 2020 declined by around 3% against 3Q-2019 due to weaker sales volume and selling price for both panel and wood flooring products following the adverse impact of Covid-19 on the economy of our export destination countries, such as Japan dan USA.
Against last year, the sales volume of Panel product fell by 10 percent to 64 thousand m3, with the average selling price lower by 2 percent. This decline was largely due to a sharp drop of 26% in demand from Japan market during the third quarter this year.
In addition, Andrianto Oetomo was also explaining about the current focus of the Company in developing sustainable plantations by utilizing all palm oil mill waste, both solid and liquid waste, and turn the waste into renewable energy. For example, the liquid waste of palm oil mills are converted into Bio-CNG, whose facility was commissioned in mid of September 2020.
And to utilize the solid waste, the Company is collaborating with eREX Singapore Pte Ltd, a subsidiary of Japan's eREX Co LTd, to supply palm kernel shells as the biomass feedstock for eREX’s biomass-based Power Plants in Japan. This joint venture is a strategic step for the Company to implement sustainability practices by utilizing palm oil mill waste to generate both economic and environmental benefits.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and engaged in palm oil and wood products industry. Currently, DSNG has planted area of112,450 hectares and 10 palm oil mills that process Fresh Fruit Bunches (FFB) into CPO with the capacity of 570 tons per hour. In wood product segment, DSNG has two wood processing plant in Central Java that produce panel and engineered floorings.
PT Dharma Satya Nusantara Tbk
Jl. Rawa Gelam V Kav. OR / 3B
Kawasan Industri Pulogadung (Pulogadung Industrial Estate)
Jakarta 13930, Indonesia