MAHKOTA GROUP (MGRO) SPURS CPO PRODUCTION AND DOWNSTREAM PRODUCTS
23 September 2020
Plantation company, PT Mahkota Group Tbk, will boost production amid the increase in palm oil prices which had touched the level of 3,000 ringgit per ton.
Corporate Secretary of Mahkota Group Elvi said that the company will continue to boost the production of both crude palm oil (CPO) and its derivative product, Refined, Bleached and Deodorized Palm (RBDPO) to be able to achieve the target set by the company.
“The projected production of RBDPO until the end of 2020 is around 110,000 tons while for CPO it is 230,000 tons,” Elvi told Bisnis on Tuesday (22/9).
Meanwhile, as of August 2020, the issuer coded MGRO stock has produced 152,000 tons of CPO and 11,000 tons of RBDPO.
In addition, MGRO will maximize forward sales by opening wider markets both locally and exports so that it can pocket higher revenues amid the momentum of rising global CPO prices.
For information, based on Malaysian exchange data, on Tuesday (22/9/2020) CPO futures prices for the most active contract, December 2020, were at 2,957 ringgit per ton, down 1.66 percent or 50 points.
Prices have turned lower, after touching 3,104 ringgit per ton in mid-trading on Monday (21/9/2020), the highest level in nine months.
However, CPO prices still recorded an impressive performance, skyrocketing up to 50 percent since touching its lowest level of 1,946 ringgit per ton in May 2020 due to the sentiment of the Covid-19 pandemic.
MGRO is optimistic that financial performance in the second half of this year will be better than the previous semester, especially with market absorption, especially for RBDPO, which is very good for both domestic and export markets.
“The market share [of RBDPO], both local and export, is very good because it is a raw material for finished goods manufacturers,” said Elvi.
Therefore, MGRO will also focus on optimizing the production capacity of the company's newest refinery plant in Bengkalis, Riau for the rest of this year.
For information, the new refinery plant has a production capacity of 1,500 tons per day. The company from North Sumatra is targeting a total production from the refinery plant of 200,000 tons per year or 548 tons per day.