MGRO - PT. Mahkota Group Tbk

Rp 885

+25 (+2,91%)

JAKARTA - Until April 2019 PT Mahkota Group Tbk (MGRO) managed to produce 59,044 tonnes of crude palm oil (CPO) and 16,886 tonnes of palm kernel (PK). However, the company admits it is still facing challenges resulted from declining global CPO prices.

“The challenges we are facing in the second quarter include unstable global CPO prices and declining fruit bunch production cycle,” Mahkota Group Corporate Secretary Elvi told Kontan.co.id, Tuesday (11/6).

In the second quarter of 2019, Mahkota Group projects its revenue to reach around Rp 1.4 trillion. Until April 2019, the company absorbed Rp 53.2 billion of capital expenditure (capex) from a total of Rp 200 billion budgeted, most of which is allocated for the development of a new refinery.

Currently Mahkota Group is developing a downstream business by developing and operating a refinery. The plant will have a cooking oil production capacity of 1,500 tonnes per day, with a kernel crushing plant that will produce 400 tonnes of palm kernel oil per day.

Ms Elvi explained that the progress of the plant’s development has so far reached 70%. The company is also conducting preparations in terms of human resources, raw material supply chain, and market studies with an operational target by the end of 2019. (MS)