MAHKOTA GROUP (MGRO) TARGET REFINERY PRODUCTION IN MID-FEBRUARY
24 January 2020
Bisnis.com, MEDAN - PT Mahkota Group Tbk. will start the operation of the refinery plant in mid-February 2020, along with the completion of the commissioning stage of the plant located in Dumai, Riau.
The company, coded MGRO, focuses on the palm oil industry and is located in Medan, North Sumatra.
President Director of Mahkota Group Usli Sarsi said the company had completed the commissioning stage of the refinery plant. Furthermore, the company schedules the refinery to start production from mid-February 2020.
Refinery plants produce CPO derivative products such as Olein or cooking oil, Stearin as raw material for margarine or Oleochemicals.
Currently, the company is in the stage of preparing raw materials for production. The source of raw materials will come from CPO products at the company's Palm Oil Mill (PKS) in Riau Province.
“The company is preparing raw materials of 15,000 tons of CPO to start production,” he told Bisnis quoted on Friday (24/1/2020).
The refinery plant has a production capacity of 1,500 tons per day. In the initial stage, the company is targeting production of 200,000 tons from the refinery plant this year.
In line with the refinery plant that began production, the company is optimistic that performance will be increasingly positive. In 2020, the company targets revenue of Rp 6.90 trillion and profit of Rp 229 billion.
Meanwhile, throughout January-September 2019, the company's performance was still depressed. This can be seen from revenues that fell 6.93% to IDR 1.37 trillion, while net profit for the current period fell 41.47% to IDR 29.69 billion.
“The depressed condition of revenue and profit in 2019 was also caused by external factors, namely the selling price of palm oil (CPO) and palm kernel (PK) which fell throughout last year,” he added.
On Friday (1/24/2020) at 10:55 am, MGRO shares fell 0.59% at IDR 845 per share. At that price level, the company has a market capitalization of IDR 3 trillion.