Lonsum's income rises with palm oil prices

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)