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Sawit Sumbermas sees CPO output falling this year
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Oil palm trees seen on a farm owned by PT Sawit Sumbermas Sarana. (Courtesy of http://www.ssms.co.id//-)
P
alm oil producer PT Sawit Sumbermas Sarana has forecast stagnant earnings for this year amid declining crude palm oil (CPO) production due to the El Nino weather phenomenon.
Sawit Sumbermas finance director Harry M. Nadir said the firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) was projected to be unchanged this year at around Rp 1 trillion (US$76 million).
The forecast of a flat performance, he explained, was based on a grim outlook for the company’s CPO production. Output is estimated to plunge by 15 percent this year, but may be offset by the selling price rising by 15 percent.
“Therefore, we expect to achieve an equal profit to last year’s [achievement],” Harry told journalists in Jakarta on Wednesday.
Sawit Sumberwaras produced around 321,000 tons of CPO in 2015. From January to June this year, production fell by around 22 percent to 115,600 tons from around 148,200 tons.
With the decrease in CPO production, the firm booked a 44.5 percent decline in net profit to Rp 195 billion in the first half of the year. (vny/ags)
