In 2019, DSNG CPO Sales Volume Rose by 46%

JAKARTA, JANUARY 31, 2020 - PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG”) recorded CPO sales volume of 666 thousand tons in 2019, rose by 46% compared to 2018. The increase was contributed by the addition of CPO production from two palm oil mills of the acquired plantations in the end of 2018 and the sale of the remaining inventory in 2018.
 
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 16% of the Company's total CPO production.
 
The Company’s CPO average selling price (ASP) in 2019 decreased by 10% to Rp 6.5 million per ton against 2018 ASP of around Rp 7.2 million per ton as the hike of CPO price has only started to occur in the fourth quarter of 2019, resulting a 10% increase against the third quarter of 2019.
 
The President Director of the Company, Andrianto Oetomo, explained that the Company’s CPO selling price in the fourth quarter of 2019 began to hike following the expectation of lower CPO stock from Malaysia and Indonesia as well as the low stock of other vegetable oils in producing countries.
 
“We estimate that CPO price will be in a bullish trend for 2020 compared to last year following the lower CPO stock in the market and the serious implementation of biodiesel mandatory policies in Indonesia and Malaysia,”Andrianto Oetomo said. 
 
In 2019, the Company’s total planted area reached 112,450 hectares, with 101,799 hectares of mature estates. The Company has added its planted area by around 4,000 hectares from new planting, resulting in the plantation’s average age of about 9.9 years old.
 
This year, the Company will continue the new planting program and develop 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.
 
“For 2020, the Company has budgeted the capital expenditure of around Rp 800 billion to Rp 1 trillion for construction of new POMs, completion of Bio-CNG facility, new planting, infrastructure and also modernizing our facilities in wood products business,” Andrianto Oetomo said.
 
Meanwhile, the wood products business segment recorded sales volume of 97 thousand m3 in 2019 for panel products, 15% higher than 2018, with panel revenue 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 business segment still provided 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

Paulina Suryanti
Corporate Secretary
PT Dharma Satya Nusantara Tbk 
Jl. Rawa Gelam V Kav. OR/3B
Kawasan Industri Pulogadung
Jakarta 13930, Indonesia
Email: corporate.communications@dsngroup.co.id