BW Plantation 9 Months FFB Production Edges Up

Indonesia Finance

Wednesday, 13 October 2010 18:39

Theindonesiatoday.com – PT BW Plantations Tbk said its palm oil fresh fruit bunch (FFB) in the first nine months to September 2010 has increased slightly by 3.32 percent to 270,563 tons, compared to the same period in the previous year of 261,881 tons.

Fresh fruit bunch is raw product used to produce palm oil and its derivative products.

According to the corporate secretary of BW Plantation, Kelik Irwantono, The climate has slowly returned to normal after FFB production was disrupted in mid year due to heavy rainfall.

As a result of weather anomaly, the company’s FFB production in the first half of 2010 declined by 8 percent from the same period of last year. However, the output began to rebound in September and such trend is expected to continue until the end of the year. He expects that the company’s FFB production will rise by 10% this year from last year.

In the first half of this year, the company recorded net profit of Rp85.55 billion, down 20.1 percent from Rp107.13 billion in the same period last year, driven by 11.7-percent declining of sales to Rp275.67 billion from Rp312.37 billion.

The company said its CPO sales volume until the first half of 2010 were down 16.8 percent to 39,438 tons from 47,426 tons in the same period last year. The declining in sales volume was primarily due to 8.1-percent declining of FFB yields, to 168,184 tons from 182,982 tons.

Production decline was due to changes in production patterns due to rainfall.

BW Plantation also today announced further details of its bonds issuance worth Rp700 billion with coupon payment ranging from 9.675% to 10.675% and with a tenor of five years.

The coupon payment will be payable for every 3 months, with the first coupon payment to be made on February 10, 2011, while the final payment to be made on Nov. 10, 2015.

PT BW Plantation President, Abdul Halim Ashari, in JAKARTA (Oct. 13) that proceeds of this bond will largely be used to expand the new plantings that will accelerate the increase in planted area of the company.

The company has appointed PT Danareksa Securities, PT BNI Securities and PT Kresna Graha Securindo as underwriters of the IPO and PT Bank CIMB Niaga as bank trustee.

Abdul said around 60 percent of the bonds proceeds will be used to finance the planting of palm oil in subsidiary firms, about 30 percent will be used for partial payment of bank loans owed by the company and its subsidiaries, and about 10% will be used for financing working capital of the company and its subsidiaries .

The bonds offering period has been set for Nov. 5-8, 2010, electronic distribution of bonds on Nov. 10 and listing on the Indonesian Stock Exchange on Nov. 11.

(Ferdi Hasiman/RK)

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