The Indonesian plantation company reported stronger earnings in the first half of 2026, supported by higher palm oil sales, improved commodity prices, and growing demand for renewable energy products.
PALMOILMAGAZINE, Jakarta, Indonesia — PT Dharma Satya Nusantara Tbk (DSNG) delivered stronger financial results in the first half of 2026, posting higher revenue and net profit despite continued challenges in the plantation and wood products industries. The company’s palm oil business remained the primary growth driver, while its renewable energy segment recorded robust expansion.
According to a company statement received by PalmOilMagazine on July 31, DSNG generated IDR 6.29 trillion in revenue during the first six months of 2026, an increase of 3.4% year-on-year (YoY). Net profit rose at a faster pace, climbing 7.8% YoY to IDR 985.88 billion, while EBITDA remained stable at around IDR 2 trillion.
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The palm oil segment accounted for approximately 90% of the company’s total revenue and earnings. Higher profitability was supported by increased sales volumes of Crude Palm Oil (CPO) and Palm Kernel (PK), as well as stronger average selling prices. Average CPO prices increased 2.5% from a year earlier, while PK prices rose 13% and Palm Kernel Oil (PKO) prices advanced 9.4%.
In addition to favorable commodity prices, DSNG improved operational efficiency, reducing finance costs to IDR 169.5 billion from IDR 231.8 billion in the first half of 2025.
President Director Andrianto Oetomo said the company remains focused on balancing productivity, efficiency, and sustainability to navigate industry challenges.
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“Amid ongoing industry dynamics, we continue to prioritize productivity improvements, the implementation of good agronomic practices, operational efficiency, and the continuation of our replanting program. These initiatives are expected to strengthen our competitiveness while supporting sustainable long-term growth,” Andrianto said.
Financial Position Remains Strong
DSNG maintained a solid balance sheet as of the end of June 2026. Total assets stood at IDR 17.81 trillion, while shareholders’ equity increased to IDR 12.13 trillion. Total liabilities declined to IDR 5.68 trillion, reflecting the company’s prudent financial management.
Operationally, the company processed approximately 1.3 million metric tons of Fresh Fruit Bunches (FFB) during the first half of the year, down 4.5% YoY. As a result, CPO production reached 299,300 metric tons, while PK and PKO output totaled 56,600 metric tons and 18,400 metric tons, respectively.
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Despite lower production volumes, processing efficiency improved. The Oil Extraction Rate (OER) increased to 23.51% from 23.33% a year earlier, while Free Fatty Acid (FFA) levels declined to 2.98% from 3.05%, indicating better CPO quality and maintaining premium-grade standards.
Renewable Energy Offsets Weak Wood Products Market
Outside its palm oil operations, DSNG’s wood products business continued to face pressure due to sluggish demand in key export markets, particularly Europe and North America. Panel sales declined 6% to 58,600 cubic meters, while engineered flooring sales dropped 64% to 116,200 square meters.
In contrast, the company’s renewable energy business delivered strong growth, driven by rising export demand for Palm Kernel Shells (PKS) and wood pellets, supported by the full commercial operation of its wood pellet manufacturing facility.
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During the first half of 2026, PKS sales increased 29% to 31,450 metric tons, while wood pellet sales surged 103% to 21,640 metric tons compared with the same period last year.
In June 2026, DSNG was once again included in the Fortune Southeast Asia 500 ranking, recognizing the region’s top-performing companies by revenue. The company said the achievement reflects its consistent financial performance and reinforces its position as one of Indonesia’s leading publicly listed companies with growing regional competitiveness.
Looking ahead, DSNG plans to further improve plantation productivity, enhance operational efficiency, and maintain disciplined financial management as it seeks to deliver sustainable long-term growth. (P2)
