Indonesian palm oil producer PT Austindo Nusantara Jaya Tbk. (ANJ) posted a $3.084 million net profit in the first quarter of 2021, almost 300 percent up from the previous quarter and reversing the trend compared to the $1.224 million loss it recorded for the same quarter last year.
Speaking at a company public expose that followed an annual shareholders meeting and a special shareholders meeting, Imam Wahyudi, who heads ANJ’s Business Development and Corporate Planning said that the higher net profit for the first four three months of this year were due to “very favorable” CPO prices and production that were higher than expected.
“Compared to the financial performance in the first quarters of the previous years, we have managed to post quite significant increases, where in 2019 we recorded $27.56 million, in the first quarter of 2020 $36.79 million dollars while this year we recorded $58.66 million,” Wahyudi said referring to the company’s net income for the first quarter.
CPO sales grew by nine percent over the last quarter to reach 65,898 tons, or a 24.33 percent higher than the volume sold in the first quarter a year earlier. CPO production grew by 20.7 percent over the last quarter of 2020 to reach 62,559 tons with the increase attributed to new productions from West Papua and Belitung.
Similiarly significant improvements were also seen in the company’s EBITDA which had grown from minus $1.146 million in the first quarter of 2019 to $6.325 million in the same quarter in 2020 and to $12.852 million in Q1 2021, twice the previous’ year level.
CPO prices averaged at $695 per ton in the first quarter compared to the $625 per ton in the previous quarter while cas costs only rose slightly from $321 pert on in Q4 of 2020 to $339 per ton in the first quarter of this year.
Lucas Kurniawan, PT ANJ Deputy President Director, speaking at the same occasion said that the company’s capital expenditure dropped to 8.69 million dollars in the first quarter from the 10.5 million from a year earlier because the first quarter of last year saw high level of expenditure as the company was still building its second line mill in West Kalimantan and its new mill in West Papua.
“Our capital expenditure in the first quarter of 2021 was mostly for the replanting and also maintenance cost to turn our immature crops into producing crops,” Kurniawan said, adding that the two cost components accounted for 39 percent of the total capital expenditure in the first three months of 2021.
The second largest capital expenditure component was for infrastructure in West Papua that took about 16 percent of the total that quarter. The construction of employee housings, polyclinics and houses of worship accounted for another 15 percent while another seven percent was for completion of the mill in West Kalimantan and edamame freezing facility in Jember, East Java.
Kurniawan said that capital expenditure for the entire year of 2021 was targeted to reach $42.8 million. The realized capital expenditure for 2020 had stood at $45.566 million and in 2019 at $74.280 million.
ANJ manages oil palm plantations in North Sumatra, East Belitung, West Kalimantan and West Papua. it also operates a sago processing business in West Papua, biogas plants in East Belitung fueled by palm oil mill effluents and fresh and frozen edamame production in Jember, East Java.