MARKET DEVELOPMENT
BW Plantation Builds New Mill to Boost Capacity
BW Plantation Builds New Mill to Boost Capacity
06/05/2013 (Jakarta Post) - Listed plantation company PT BW Plantation (BWPT) is looking to operate a new palm oil mill in East Kalimantan by the end of this year in an effort to boost production capacity.
The US$10 million mill is currently under construction in Senyiur, East Kutai regency, and will have a production capacity of 60 tons per hour. The company hoped to begin production by the end of this year or in January 2014 at the latest, according to BW Plantation president director Abdul Halim Ashari.
At the moment, BWPT has three mills in Central Kalimantan province, with a total production capacity of 135 tons per hour. Besides building the new mill, it is also expanding production capacity at its mill in Sei Bedaun, Central Kalimantan, to reach 60 tons per hour by August from the current 45 tons per hour.
“We are expanding capacity to anticipate peak crops between September and October,” Abdul said, adding that when all the work was completed, the company would have a total production capacity of 210 tons per hour by 2014.
In 2013, BWPT hopes to achieve a 25 percent increase in its crude palm oil (CPO) production volume to 156,000 tons. As of now, its total plantation area covers 110,000 hectares in Central, East and West Kalimantan provinces, with planted areas reaching 70,000 hectares.
According to Abdul, the company’s focus this year is to cultivate the remaining 30,000 unplanted hectares. “We just acquired in April 6,000 hectares of greenfield in West Kalimantan and we have received several other land-acquisition offers. We are looking into them, but because it is costly to develop new areas, our priority now is to work on the land that we already have,” he added.
To support its operations, BWPT is allocating Rp 1 trillion (US$102.67 million) in its capital expenditure (capex) budget this year. Around 70 percent of its capex funds are generated from bank loans and the rest from internal cash.
The company announced in April that it had secured from state-owned Bank Negara Indonesia (BNI) working capital and investment loans of Rp 100 billion and Rp 622.69 billion, respectively.
Meanwhile, in the first quarter of 2013, BWPT reported that its revenue had risen slightly by 0.4 percent to Rp 268.86 billion, while it recorded a much higher increase in CPO sales volume, which grew 29.1 percent to 40,026 tons.
BWPT corporate secretary Kelik Irwantono said the company was still suffering from the low CPO price, which prevented it from reaping higher revenues. Between January and March 2013, its average CPO selling price stood at Rp 6.02 million per ton, 22.8 percent lower than the Rp 7.8 million per ton during the same period last year.
Increasing costs of goods sold, which jumped 60 percent to Rp 167.04 billion, also squeezed BWPT’s bottom line in the first quarter and its net profit fell 56 percent to Rp 36.17 billion.
By March 2013, BWPT’s total assets reached Rp 5.11 trillion. Its liabilities stood at Rp 3.4 trillion, while its equities totaled Rp 1.71 trillion. The company’s shares closed at Rp 860 last Friday, down 2.3 percent from a day before.
The US$10 million mill is currently under construction in Senyiur, East Kutai regency, and will have a production capacity of 60 tons per hour. The company hoped to begin production by the end of this year or in January 2014 at the latest, according to BW Plantation president director Abdul Halim Ashari.
At the moment, BWPT has three mills in Central Kalimantan province, with a total production capacity of 135 tons per hour. Besides building the new mill, it is also expanding production capacity at its mill in Sei Bedaun, Central Kalimantan, to reach 60 tons per hour by August from the current 45 tons per hour.
“We are expanding capacity to anticipate peak crops between September and October,” Abdul said, adding that when all the work was completed, the company would have a total production capacity of 210 tons per hour by 2014.
In 2013, BWPT hopes to achieve a 25 percent increase in its crude palm oil (CPO) production volume to 156,000 tons. As of now, its total plantation area covers 110,000 hectares in Central, East and West Kalimantan provinces, with planted areas reaching 70,000 hectares.
According to Abdul, the company’s focus this year is to cultivate the remaining 30,000 unplanted hectares. “We just acquired in April 6,000 hectares of greenfield in West Kalimantan and we have received several other land-acquisition offers. We are looking into them, but because it is costly to develop new areas, our priority now is to work on the land that we already have,” he added.
To support its operations, BWPT is allocating Rp 1 trillion (US$102.67 million) in its capital expenditure (capex) budget this year. Around 70 percent of its capex funds are generated from bank loans and the rest from internal cash.
The company announced in April that it had secured from state-owned Bank Negara Indonesia (BNI) working capital and investment loans of Rp 100 billion and Rp 622.69 billion, respectively.
Meanwhile, in the first quarter of 2013, BWPT reported that its revenue had risen slightly by 0.4 percent to Rp 268.86 billion, while it recorded a much higher increase in CPO sales volume, which grew 29.1 percent to 40,026 tons.
BWPT corporate secretary Kelik Irwantono said the company was still suffering from the low CPO price, which prevented it from reaping higher revenues. Between January and March 2013, its average CPO selling price stood at Rp 6.02 million per ton, 22.8 percent lower than the Rp 7.8 million per ton during the same period last year.
Increasing costs of goods sold, which jumped 60 percent to Rp 167.04 billion, also squeezed BWPT’s bottom line in the first quarter and its net profit fell 56 percent to Rp 36.17 billion.
By March 2013, BWPT’s total assets reached Rp 5.11 trillion. Its liabilities stood at Rp 3.4 trillion, while its equities totaled Rp 1.71 trillion. The company’s shares closed at Rp 860 last Friday, down 2.3 percent from a day before.