Oil Palm Plantation Company Owned By Conglomerate TP Rachmat Reaches Sales Of IDR 5.1 Trillion And Profit Of IDR 424 Billion In The Third Quarter Of 2021

Illustration. (Photo: Doc. Antara)

JAKARTA - Oil palm plantation and processing company PT Dharma Satya Nusantara Tbk (DSNG) posted an increase in performance in the first nine months of this year. This company owned by conglomerate TP Rachmat managed to reap a net profit of R 424 billion until the third quarter of 2021, or an increase of 162 percent compared to the same period in 2020.

In the DSNG's financial report, quoted on Friday, October 29, it was explained that the increase in profit was driven by the increase in crude palm oil (CPO) prices and the improving business performance of the wood products segment. In the same period, the company's CPO price was raised by around 13 percent to IDR 8.7 million per tonne compared to last year's IDR 7.7 million per tonne.

This price increase will support DSNG's CPO sales so that sales of the palm oil segment can increase by 12 percent year on year (yoy) per quarter III-2021. In fact, DSNG's CPO sales volume fell 5 percent to 413.000 tons due to the decline in CPO production.

During the first nine months of 2021, Dharma Satya Nusantara recorded sales of IDR 5.1 trillion, growing 15 percent compared to the same period last year. Sales of palm oil contributed 81 percent of the total sales of DSNG or IDR 4.1 trillion.

Dharma Satya Nusantara President Director Andrianto Oetomo explained that the increase in world vegetable oil demand during the second and third quarters of this year as well as the energy crisis in several countries contributed to the increase in Dharma Satya Nusantara's CPO prices. He estimates that CPO prices will still rally until the end of 2021.

"The potential for this increase follows the energy crisis in India and China which boosted exports. On the other hand, the limited supply of CPO due to a shortage in supply from Malaysia is related to the issue of labor shortages," Andrianto.

Meanwhile, for panel products, the improvement in the Japanese economy has contributed to an increase in sales volume by 25 percent to 80.000 m3 with an average price increase of 2 percent.

As of the third quarter of 2021, DSNG recorded an EBITDA growth of 37 percent to IDR 1.3 trillion compared to the same period last year of IDR 947 billion. Dharma Satya Nusantara is also optimistic that the financial performance in 2021 will be much better than in 2020.