Astra Agro projects 200% profit rise

JAKARTA (JP): PT Astra Agro Lestari, a plantation subsidiary of the country's largest automaker PT Astra International, projected yesterday a nearly 200 percent increase in net profit this year, to Rp 270 billion (US$33.75 million) from Rp 90.6 billion in 1997.

Finance director Benny Tjoeng said the company also expected a 82 percent increase in net sales to Rp 1 trillion from Rp 549 billion last year.

The company, listed on the Jakarta Stock Exchange, recorded net profit of Rp 63.3 billion and net sales of Rp 342.1 billion in 1996.

He said Astra Agro Lestari was optimistic of reaching its net profit and sales targets this year due to an increase in the company's crude palm oil (CPO) production and the high CPO prices on the international market.

He said the commodity currently sold at $680 per ton on the international market, compared to $290 per ton domestically.

"We are fortunate enough with the global CPO prices," he said.

Though the global CPO price is predicted to decline in the coming months due to ample supply, the company would not be badly affected, he said.

He said the CPO price in the global market was expected to decline to $670 per ton in May and $650 per ton in June.

The company expects to produce 320,000 tons of CPO this year, he added, up from 254,362 tons of CPO in 1997, due to rapid expansion of its plantation area.

"Of the total CPO production in 1998, we expect to export 30 percent to the global market," he said, adding that the company sold only about 12,500 tons of CPO in 1997.

The company produced 196,622 tons of CPO in 1996.

Benny said the company did not have any significant difficulties with its foreign exchange debts of about $15 million owed to the country's largest private bank, Bank Central Asia of the Salim Group.

Although the debts will mature this year, Benny said "but we still have bank deposits worth $6 million.

"Astra Agro Lestari does not have any significant difficulties with its foreign debts".

He said the monetary crisis, in which the rupiah's value has fallen by around 70 percent against the American dollar since July last year, had not adversely affected the company's performance as it generated some revenue in dollars. (aly)