PALMOILMAGAZINE, SINGAPORE – Bumitama Agri Ltd. (Bumitama or the Group), listed on the Singapore Exchange (SGX) and operating palm oil plantations in Indonesia, recently announced its quarterly performance results for the period ending in March 2024.
The company, renowned for its primary productions of crude palm oil (CPO) and palm kernel (PK), reported a total income of Rp 3.87 trillion for the first quarter of 2024 (1Q24), marking an 8% increase compared to the same period last year (1Q23).
This growth was primarily attributed to a significant rise in CPO trade, which accounted for 91% of the total trade. Despite a 1% decrease in the average selling price, the CPO selling volume increased by 7% year-on-year (YoY).
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“CPO trade contributed Rp 3,54 trillion at 1Q24, increased from Rp 3,32 trillion in 1Q23,” the company noted as the official statement to Palmoilmagazine.com, Tuesday (14/5/2024).
Even though the income got increase, the net profits got decreased 23% YoY to be Rp 328,38 billion in 1Q24. It happened for the increasing US dollar because the interest rate got longer in The Fed. But if not considering the loss from the increasing dollar, the main income would increase 23% YoY to be reaching Rp 373,69 billion. EBITDA also got escalated 8% YoY to be Rp 743,21 billion within EBITDA margin that increased 0,1 percentage to be 19,2%.
In April 2024, ENSO index returned to neutral level, ended the 2023 – 2024 El Nino event which one strongest factor in the history. The extreme weather created close supply with the increasing demands in the domestic in Ramadhan days. This made CPO price hit the top at Rp 13.400 per kg by the early of April.
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The final supply in Indonesia in February 2024 reached 3,26 million tons, 25% under the average level for the last 24 months. Malaysia got 1,7 million tons in March 2024, less than the safety level at 2 million tons. The lack of supply was clearly seen in Malaysia Derivatives Exchange by the formation of backwardation future curve that happened since January 2024. The spot price was traded more than the future estimation price.
“Bumitama produced fresh fruit bunch 8% more than it in 1Q24 with the total 1,14 million tons. Its internal FFB volume got escalated 2% to be 764 thousand tons, while the external of the company produced to increase 20% to be 387 thousand tons. CPO production got escalated 9% YoY to be 256 thousand tons in 1Q24. The yield extraction did too 0,4 percentage point to be 22,5%,” the company mentioned in the report. (T2)
