Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>Agriculture  >> Palm oil producers’ net profits skyrocket on higherselling prices
NEW UPDATES Asean Affairs 25 July 2014  

Palm oil producers’ net profits skyrocket on higherselling prices

Publicly listed palm oil producers rounded up the first half of the year with significant net profit growth after gloomy business last year on the back of improving crude palm oil (CPO) prices and a rise in production.

Sampoerna Agro, part of tobacco conglomerate Sampoerna Group, saw its net profit rise by nearly sevenfold to Rp 192.63 billion between January and June this year, compared to the Rp 27.52 billion it generated during the same period last year.

The significant jump in the company’s bottom line was propped by a 43.56 percent year-on-year (y-o-y) revenue increase up to Rp 1.45 trillion and a 42.8 percent increase in its CPO production to 142,045 tons.

“The significant increase in our sales is due to the rise in our average selling price [ASP],” the company’s written statement, made available on the Indonesia Stock Exchange (IDX) website on Wednesday, said.

Sampoerna Agro saw its ASP for CPO soar by about 38 percent to reach Rp 8,865 per kilogram in the first half of 2014, compared with the Rp 6,401 it registered last year.

Sampoerna Agro is not the only plantation firm to end its first six months this year with skyrocketing profit, as Astra Agro Lestari (AALI) and Dharma Satya Nusantara (DSNG) also enjoyed significant jump in their bottom line thanks to increasing CPO selling prices.

AALI, plantation unit of diversified conglomerate Astra Internasional Indonesia, reported that its net profit doubled to Rp 1.42 trillion in the first half of this year from Rp 745.64 billion between January and June last year.

AALI saw a 45.71 percent y-o-y revenue increase to hit Rp 8.01 trillion in the first half. Its CPO sales volume, however, declined 10.3 percent to 674,730 tons due to the company’s strategy to shift some of its output to olein production.

The company attributed the astonishing rise in revenue to its ascending CPO prices, which increased 31.5 percent y-o-y to market at Rp 8,728 a kilogram throughout the first half of 2014.

DSNG, on the other hand, tripled its net profit to Rp 367.36 billion in the first half of the year, compared with the Rp 114.85 billion generated in the same period last year

The company’s president director, Djojo Boentoro, said that the skyrocketing net profit was driven by gains in both CPO production and the average selling price in the first six months.

DSNG’s CPO output rose 30.2 percent over the same period last year, while its average selling price ascended 35.7 percent to Rp 8,780 per kilogram.

The palm oil companies’ rising profits were in contrast with their achievement last year, during which the country’s plantation firms saw their bottom line erode by plunging CPO prices due to unfavorable global economic conditions and sinking demand.

Kiswoyo Adi Joe, an analyst from Investa Saran Mandiri, warned that the astounding rise might not last until the end of the year, as first half performance was most likely driven by the global price jump in the first quarter of the year and the rupiah depreciation against the US dollar, which is favorable for export commodities.

“The CPO price is declining quarter-on-quarter, and El Nino — which is supposed to lead to a supply decline and rising prices — is estimated to be wetter than it was first projected. The rupiah is also estimated to rebound in the second half,” he said.

“CPO firms might conclude the year with a [net profit] rise of only 5 percent,” he said

Global prices started to gain a foothold late last year and went on to hit 2,916 ringgit a ton on the Bursa Malaysia Derivative on March 11, the highest level since September 2012. CPO prices on the Malaysian bourse, despite being traded 13 percent higher compared to the first half of 2013, have declined by about 4 percent to 2,576 ringgit per ton.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                            July 25, 2014 Subsribe Now !
• Thailand explains domestic political situation at ASEAN-EU meeting Subcribe: Asean Affairs Global Magazine
• Palm oil producers’ net profits skyrocket on higherselling prices
• Singapore defense chief understands Thai political situation 
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Singapore’s inflation eases in June on slowing car prices
• WB pledges loans to Viet Nam
Asean Analysis                    July 25, 2014

• Asean Analysis July 25, 2014
China’s Oil Rig Removal and the ASEAN Regional Forum
Advertise Your Brand

Asean Stock Watch    July 24, 2014
• Asean Stock Watch-July 24, 2014
The Biweekly Update
• The Biweekly Update  July 25, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand