PALMOILMAGAZINE, JAKARTA – PT Dharma Satya Nusantara Tbk (DSNG) reported a 41% year-on-year (YoY) increase in profits for the first semester of 2024, reaching Rp 508 billion.
This growth is attributed to higher income across several business segments, including palm oil, wood, and renewable energy. The main drivers of the profit increase were higher palm oil prices and reduced operational costs, despite last year’s higher fertilizer prices.
For the first half of 2024, DSNG’s total income was Rp 4.7 trillion, up from the previous year. The palm oil segment was the largest contributor, with revenues reaching Rp 4 trillion, a 5% increase from the first semester of 2023. This was supported by a 3.2% rise in the average price of crude palm oil (CPO) and an 8.6% increase in palm kernel oil (PKO) prices.
Andrianto Oetomo, Director of DSNG, noted that the palm oil segment remains the company’s primary revenue source, accounting for about 86% of total income, driven by improved plantation productivity and better oil extraction rates (OER).
“Palm oil operation in the company was helped by the better OER from 22,62% in the first semester last year to be 24,05% in the first semester this year. The decreasing CPO production happened for the decreasing purchase from the external because of the limited FFB supply with the price margin in the processing sector,” Andrianto Oetomo said, as in the official statement Palmoilmagazine.com, Tuesday (30/7/2024).
Wood product segment contributed about Rp 558 billion or 12% to the total income in the company, increased 11% to the first semester of 2023 as panel products selling did increase up to 25% YoY. But the wood product trade did not get better yet globally. It was from the decreasing price of panel product selling price to last year while the wood floor product got a little more expensive to sell because of the different composition.
“Even though the wood product trade is not too good, the company would keep develop wood product business to get better performance in the future. The development plans are being discussed before the execution. This would consider the markets,” he said.
Since last year, renewable energy segment in DSNG that focused on biomass, started contributing income for the company by selling palm oil shell to Japan. In the first semester 2024, renewable energy contributed Rp 119 billion or about 2,5% of the total income in the company, got escalated almost 300% to last year period.
In association with the decreasing currency of rupiah towards US dollar, that reached 7% in the first semester 2024, Andrianto Oetomo said that it would deliver impact to the total debts of the company in US dollar that would be translated to rupiah in the book. Actually, the US debt of the company got decreased 12% by the end of 2023 as the company paid the installment. By the late of June 2024, the US debt of the company was just about 20% of the total debts.
Andrianto Oetomo would not worry to the company’s ability to fulfill its obligation to pay the US debt because the payment would be about 25% of the US dollar total income of wood, renewable business segments and would be in natural hedging. (P2)
