Palm plantation company PT Eagle High Plantations Tbk (BWPT), has allocated IDR 200 billion of Capital expenditure (Capex) to add new factories in East Kalimantan, and for maintenance of its machinery and equipment.
The company was first established in 2000 under the name of PT Bumi Perdana Prima Internasional. It changes its name to PT BW Plantations Tbk in 2007 and later became a publicly listed company in 2009 under the listing code of BWPT. The company entered into an agreement to acquire 100% share ownership in the Green Eagle Group in 2014 and changed its name to PT Eagle High Plantations Tbk.
Eagle High Plantations focuses on palm oil processing and plantation. Its activities include operating plantations, agriculture, trade, and processing plantation products. Its products include crude palm oil (CPO) and palm kernels.
Focus on double-digit growth
The company will be building a new factory in East Kalimantan and continues to maintain its infrastructure, and public facilities. It will also further develops its existing land bank, and rejuvenates its heavy machinery to support the company’s production growth in the plantation sector.
In 2023, the company continues its positive work rate trend of 2022, by targeting a double-digit growth this year in 2023. In an effort to achieve the targets, the company will focus on Capex investments.
The company had achieved a double-digit growth rate through CPO production increase of about 42% YoY, and palm kernels at 52% YoY. Its CPO volume growth is about 41% YoY from 236,000 tons to 334,000 tons in 2022.
Financially as of December 31, 2022, the company has achieved an income of IDR 4.6 trillion, or 56% increase year-on-year (YoY), compared to 2021 with IDR 2.9 trillion.
Its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) achieved an increase of about 35% YoY from IDR 817 billion in 2021, to IDR 1.1 trillion in 2022.
The company admits its achievements were based on the consistency of the company in the last 3 years by suppressing the administration, and general cost by about 29%; and a decrease of interest expense of 36%, which resulted in the company scoring a net profit in 2022.
BWPT however, admitted that its national palm oil production in 2023 will come to stagnation, but remain optimistic that business will be better this year.
