DSNG Booked Q3-2024 Profit of Rp 868 Billion
Jakarta, 30 October 2024 – Palm oil, wood product, and renewable energy company PT Dharma Satya Nusantara Tbk (DSNG) posted a profit of Rp 868 billion for Q3-2024, marking a 72% year-on-year (YoY) increase. The palm oil segment continued to be the main contributor to the company’s revenue, accounting for approximately 86% of the total.
The profit increase was driven by a 9% YoY rise in sales, reaching Rp7.2 trillion from Rp 6.6 trillion, aligned with reduced fertilizer prices, which positively impacted cost efficiency. Consequently, EBITDA rose 34% YoY to Rp 2.1 trillion.
This positive performance was also supported by a rise in the Average Selling Price (ASP) for Crude Palm Oil (CPO), Palm Kernel (PK), and Palm Kernel Oil (PKO), which increased by 8%, 28.2%, and 22.2% YoY, reaching Rp 12,421/kg for CPO, Rp 6,559/kg for PK, and Rp 16,014/kg for PKO. In addition, panel wood product revenue improved by 13.2% YoY, reaching Rp 503 billion due to stronger sales volume as DSNG grabbed market opportunities in the wood sector left by competitors amid last year’s global economic pressures.
“The company continues to focus on enhancing productivity and implementing strategies to manage production costs effectively. By the end of 2023, we have rejuvenated 675 hectares of unproductive palm oil plantations, and replanted 500 hectares to maintain our plantations at prime age,” said Andrianto Oetomo, President Director of DSNG.
The Renewable Energy business segment also contributed through the sale of palm kernel shells (PKS), generating revenue of Rp 162 billion. This commodity is a major export product, sold to Japan in partnership with Erex Singapore Pte. Ltd. As of this quarter, DSNG has exported 84 thousand tons of PKS.
In terms of production, the Fresh Fruit Bunch (FFB) output from the palm oil segment in Q3 2024 declined 5.1% YoY, from 1.64 million tons to 1.56 million tons. This decline was driven by the palm oil industry’s production trend, primarily due to the effects of prolonged dry weather since last year, especially in West and Central Kalimantan Province. In addition, yield recovery improvements stalled throughout 2024, slowing the industry’s overall CPO output growth.
Nevertheless, until Q3-2024, DSNG managed to increase its Oil Extraction Rate (OER), which remained around 24%. By Q3 2024, OER rose by 4.9% YoY, from 22.93% to 24.04%. In addition, the free fatty acid (FFA) level reached 2.84%, outperforming the standard threshold of 3%, ensuring premium quality CPO.
Overall, DSNG’s financial performance in Q3-2024 reflects a robust financial position, with total assets reaching Rp 17.4 trillion, up 7.8% YoY. The company’s liabilities totaled Rp 7.8 trillion, while equity amounted to Rp 9.6 trillion.
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ABOUT PT DHARMA SATYA NUSANTARA TBK
PT Dharma Satya Nusantara Tbk (DSN Group) was established on September 29, 1980, and focused on palm oil, wood products, and renewable energy businesses. DSNG has 112.2 thousand hectares of planted area and 12 palm oil mills, which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 675 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings, with an installed capacity of 150,000 square meters per month for engineered floorings and 12,000 cubic meters per month for panel products. Meanwhile, the renewable energy business started in 2023 with sales from exporting palm kernel shells (PKS) as biomass feedstock for power plants in Japan.
FOR MORE INFORMATION
Paulina Suryanti
Corporate Secretary
PT Dharma Satya Nusantara Tbk
GRHA DSN
Jl. Pulo Ayang Kav OR.3, Kawasan Industri Pulogadung
Kelurahan Jatinegara, Kecamatan Cakung, Jakarta Timur 13930
Email: corporate.communications@dsngroup.co.id