SINGAPORE (Yosefardi) – Kencana Agri Limited reported revenue of US$284.9 million for the year ended 31 December 2013. Revenue declined of 5.6% mainly due lower ASP of CPO offset by a slight increase in the volume of CPO sold.
The ASP of CPO decreased from US$816/MT in FY2012 to US$717/MT in FY2013 whereas the ASP of CPKO decreased from US$906/MT to US$718/MT for the same period in comparison.
The operating profit and net loss after tax were US$294K and US$10.7 million respectively during 2013; as compared to operating profit and net profit after tax of US$30.9 million and US$17.3 million respectively in 2012.
The losses were mainly due to unrealised foreign exchange losses resulting from the revaluation of US$ borrowings as the IDR depreciated against the US$, lower ASP of CPO and higher interest expense.
Financial expenses increased by 57.3% to US$10.4 million as a result of higher mature area. Interest cost related to mature area is expensed whereas that of immature area is capitalised.
At the operational level, the Group’s total planted area (nucleus and plasma) increased by 4,965 ha to 66,084 ha as at 31 December 2013. Mature area stand at 35,510 ha. FFB produced from nucleus decreased marginally from 424,601MT to 419,694MT due to low crop trend experienced this year. The oil extraction rates for CPO and CPKO were 20.2% and 43.0% respectively.
Kencana Agri’s new planted area (including plasma) reached approximately 4,965ha in 2013.
It focuses to maintain new planting of around 2,000-5,000ha each year. The joint venture (JV) for bio-energy to commence operations in first quarter of 2014. Construction of 5th palm oil mill with 45MT/hour capacity in East Kalimantan to commerce in first half of 2014.