Lonsum's income rises with palm oil prices

JAKARTA (JP): Publicly listed London Sumatra Indonesia (Lonsum) said yesterday its net income rose 28 percent to Rp 20.81 billion (US$8.6 million) in the first quarter this year over the same period last year.

The company said this was due to an increase in non-operating income to Rp 12.25 billion from Rp 880 million in the same period of 1996.

Revenue was Rp 44.47 billion and operating profit Rp 18.59 billion, respectively 6 percent and 20 percent lower.

Palm oil sales were Rp 20.23 billion for 18,131 tons, respectively 10 percent and 6 percent less due to the postponement of a 2,500 ton shipment until April. Sales of palm kernel were ahead with increased production.

Rubber production, sales and revenue were all seven percent below last year in line with a decrease in mature hectares.

The company's president Geoffrey Brown said "palm oil prices continue to exceed the conservative prices we estimated at the time of the initial public offering in July last year resulting in good results.

"But more importantly, we continue to efficiently increase production. It is by this that we judge our success in the industry," he said.

Lonsum is developing 90,000 hectares of oil palm plantations in South Sumatra and East Kalimantan. By the end of the century, hectares dedicated to oil palms will almost triple to 60,000.

Lonsum continues to invest in research and development. This had contributed to a 100 percent increase in production over the past three decades, he said.

Net non-operation income increased from the investment of working capital and funds available for the South Sumatra development, the company said. (hen)