JAKARTA (Yosefardi) – Plantation company PT BW Plantation Tbk (BWPT) produced 88,000 tons of crude palm oil (CPO) in July 2013, grew by 18% compared to 72,000 tons in July 2012.
The company targets to produce 160,000 tons of CPO this year, a 25% rise compared to 2012’s production. It produced 75.000 tons of CPO in first half of this year.
BW Plantation also targets to sell 304,000 tons of CPO this year. The company sold 76,000 tons of CPO in first half of this year.
In 2014, BW Plantation targets CPO production to grow by 30%. The company is now building CPO mills in East Kalimantan and Central Kalimantan, targeted to commence commercial operation this year.
The company allocates capital expenditure (capex) of Rp1 trillion for this year. However it will cut its capex for next year as the company is now facing the problem on cash flow for funding operation and debt ratio issue.
The company’s net gearing ratio now reaches its highest for the past few years. In first half financial report, the company reported its operational cash flow only reached Rp34 billion, dropped 70% from Rp113 billion in the same period of last year. Debt ratio rose to 199.7% in second quarter of this year from 168.1% in first quarter.