London Sumatra upbeat CPO output will continue to rise in second half
The Jakarta Post
Publicly listed plantation firm PT London Sumatra Indonesia (Lonsum) is upbeat its crude palm oil (CPO) production will increase in the second half of the year on the back of favorable weather patterns.
Lonsum, a subsidiary of diversified group PT Indofood Sukses Makmur, hopes to jack up its production by 10 percent to 422,950 tons this year from last year, banking on a longer rainy season.
As of June, the firm has managed to push up its CPO production rate by 17.5 percent year-on-year (yoy) to 181,000 tons, representing 42 percent of its annual target, said president director Benny Tjoeng.
"We hope the surge will continue in the second half when usually [our] CPO production is higher than in the first half," he told reporters.
Last year, Lonsum’s output dropped by 19.1 percent due to a long dry season.Read also: Indofood to continue expanding despite sluggish economic growth
A surge in palm oil prices, a commodity with wide application, including in cooking oil, cosmetics and biofuels, during the January-June period helped the firm improve its business performance.
Lonsum’s revenues surged considerably by 49.3 percent to Rp 2.47 trillion.
Of that figure, 91 percent came from CPO sales, while another 7 percent and 2 percent came from sales of rubber and oil palm seedlings, respectively.
In line with the revenue gains, its net profits skyrocketed by 308 percent to Rp 459.5 billion. (lnd)
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