JAKARTA (TheInsiderStories) – Indonesian palm oil producer, PT Austindo Nusantara Jaya Tbk (IDX: ANJT), plans to increase the number of outstanding shares through free float program in this year. Currently, the percentage of public shares still relatively small around 7.6 percent.
“We have plans to increase the floating shares from 7.6 percent to a significant amount,” said the finance director, Lucas Kurniawan in a virtual conference, on Friday (01/14).
In this year, He reported, the issuer also allocated a capital expenditure of US$42 million for replanting and maintaining immature palm oil trees, to increases the additional capacity in West Kalimantan from 45 tones per hour to 90 tones per hour, the completion of the frozen vegetable processing facility in East Java, and for infrastructure development and sago processing facilities.
Apart from developing the sago business, the company has also started to develop a frozen vegetable business like edamame. The first export shipment of edamame has been launched to Laos in 2020.
Kurniawan estimated, the average crude palm oil price (CPO) could reached $842 per metric ton (MT) of CPO. In early January the price had touched $1,000 a MT of CPO. Until the third quarter (3Q) of 2020, the nucleus production rose by 2.1 percent from 542,156 tones of CPO to 553,698 tones of CPO.
“The increase in production for nucleus plantations was contributed by our new West Papua plantations was start producing in the first quarter of 2020,” he revealed.
But, the production of CPO and palm kernel decreased by 2.6 percent and 4.9 percent, respectively, mainly due to lower production from their plantations in Belitung Island and in West Kalimantan due to the impact of drought conditions in the second half of 2020.
At the same period, edamame’ production increased by 37.1 percent to 658 tones from 480 tones in 2019. The average selling price also jumped by 19.1 percent from Rp6,722 per kilograms in the 3Q of 2019 to Rp8,009 per kilogram in the 3Q of 2020. While, sago production decreased by 7.0 percent to 1,801 tones also the average selling price lowered 9.9 percent to Rp6,243 per kilogram.
With the achievements, total net income of Austindo jumped by 28.6 percent from $92.1 million to $118.4 million supported by the increase of the average selling price. The company also turning losses into the net profit in 3Q of 2020 from minus $5.9 million to $1.4 million.
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