MARKET DEVELOPMENT
Gozco Plantations Sets $25m for Capital Expenditure This Year
Gozco Plantations Sets $25m for Capital Expenditure This Year
14/02/2014 (Jakarta Globe) - Gozco Plantations, a palm oil producer based in Sidoarjo, East Java, will allocate Rp 300 billion ($25 million) for capital expenditure this year, down from Rp 350 billion in 2013.
Gozco’s corporate secretary Edbert Effendy said on Wednesday that the company will finance the investment with Rp 150 billion from its own pockets. It will also seek bank loans to fund the remainder.
The company has received loans from two national banks, according to Edbert.
“We’ve raised the external funds needed for our expenditures. However, we can’t give the names of those two banks just yet,” he told Investor Daily in Jakarta.
The company plans to use roughly Rp 100 billion of its capital spending funds to manage and plant new seeds at its 3,500-hectare palm plantation.
Gozco’s largest plantation is located in South Sumatra, with total planted area of 25,195 hectares.
The company also owns 6,857 hectares of land in West Kalimantan and 7,385 hectares in Central Kalimantan.
Last year, Gozco posted a 150,000 metric ton output of fresh palm fruit bunches (FFB). The number fell short of the company’s target to harvest 175,000 tons in 2013 due to unstable weather conditions, according to Gozco’s president director Tjandra Gazali.
From the FFB, the company produced 50,000 tons of crude palm oil and 10,000 tons of kernel. The average price for kernel last year hovered at Rp 7,532 per kilogram, while kernel costs Rp 3,913 per kilogram on average.
“At the moment, the company isn’t really feeling the effects of the declining CPO prices,” said Tjandra.
Last year, CPO and kernel sales at Gozco rose 2.5 percent to Rp 415 billion, compared to Rp 405 billion the previous year.
Despite a growing revenue in 2013, Gozco’s profit shrank, according to Tjandra.
Shares of Gozco’s shares rose 0.9 percent to close at Rp 106 on the Indonesia Stock Exchange (IDX) on Thursday.
Gozco’s corporate secretary Edbert Effendy said on Wednesday that the company will finance the investment with Rp 150 billion from its own pockets. It will also seek bank loans to fund the remainder.
The company has received loans from two national banks, according to Edbert.
“We’ve raised the external funds needed for our expenditures. However, we can’t give the names of those two banks just yet,” he told Investor Daily in Jakarta.
The company plans to use roughly Rp 100 billion of its capital spending funds to manage and plant new seeds at its 3,500-hectare palm plantation.
Gozco’s largest plantation is located in South Sumatra, with total planted area of 25,195 hectares.
The company also owns 6,857 hectares of land in West Kalimantan and 7,385 hectares in Central Kalimantan.
Last year, Gozco posted a 150,000 metric ton output of fresh palm fruit bunches (FFB). The number fell short of the company’s target to harvest 175,000 tons in 2013 due to unstable weather conditions, according to Gozco’s president director Tjandra Gazali.
From the FFB, the company produced 50,000 tons of crude palm oil and 10,000 tons of kernel. The average price for kernel last year hovered at Rp 7,532 per kilogram, while kernel costs Rp 3,913 per kilogram on average.
“At the moment, the company isn’t really feeling the effects of the declining CPO prices,” said Tjandra.
Last year, CPO and kernel sales at Gozco rose 2.5 percent to Rp 415 billion, compared to Rp 405 billion the previous year.
Despite a growing revenue in 2013, Gozco’s profit shrank, according to Tjandra.
Shares of Gozco’s shares rose 0.9 percent to close at Rp 106 on the Indonesia Stock Exchange (IDX) on Thursday.