Indonesian Crude Palm Oil Producers Post Good Financial Results in Q1-2014

New El Niño Cycle 2014

El Niño is a weather phenomenon which occurs once every five years on average. The phenomenon involves warm water in the Pacific Ocean that can cause droughts in some regions (possibly leading to famine), while it can cause floods due to high rainfall in other places. Once every twenty years, the impact of El Niño on the environment is extra strong. The last time the world witnessed an extra strong El Niño cycle was in 1997-1998 resulting in the deaths of around 2000 people and damages worth of tens of billions US dollars. Forecasts of the aforementioned institutions suggest that this year's El Niño may be rather strong.

Two weeks ago, Australia's Bureau of Meteorology said that it is convinced that the world needs to prepare for a new El Niño cycle, the impact of which will be felt starting from July 2014. Also the European Center for Medium range Weather Forecasting (ECMWF) and the US Climate Prediction Center forecast high chances of a new El Niño cycle in 2014.

El Niño is capable of causing floods in Southeast Asia because of high rainfall, thus threatening local palm oil plantations (Indonesia and Malaysia account for almost 90 percent of global CPO production). This then causes demand for CPO to rise considerably as country's want to safeguard stockpiles of the commodity.

Particularly Dharma Satya Nusantara is expected to secure high revenue for the remainder of 2014. Analyst at Indosurya Securities William Suryawijaya stated that this company still owns large unplanted land banks compared to the other companies.

Listed Indonesian CPO Companies Financial Results Q1-2014 (in Billion Rupiah):

	Revenue			Net Profit
Company	Q1-2014	Q1-2013	% Growth	Q1-2014	Q1-2013	% Growth
Astra Agro Lestari	3,725	2,723	36.7	784.6	356.3	120.2
Austindo Nusantara Jaya	398.2	409.2	2.7	44.6	44.2	0.9
Dharma Satya Nusantara	1,238	799.2	54.9	149	21.6	589.8
Gozco Plantations	85.4	68.2	25.2	-8.4	4	-310
Jaya Agra Wattie	214.7	164.9	30.2	30.3	27.6	9.7
PP London Sumatra Indo.	1,279	912	40.2	223.6	100.5	122.4
Provident Agro	244.4	152.5	60.2	85.2	26.4	222.7
Sampoerna Agro	649.6	585.5	10.9	55.4	22.9	141.9
Salim Ivomas Pratama	3,171	3,096	2.4	192	99.8	92.3
SMART	9,072	5,589	62.3	888.2	553.1	60.5
Sawit Sumbermas Sarana	524.2	435.3	20.4	196.1	148.8	31.7
Tunas Baru Lampung	1,158	873	32.6	131.9	77.8	69.5
Bakrie Sumatera Plant.	659.2	481.3	36.9	296.8	-62.9	571.8
Total	22,418	16,289	37.6	3,069	1,420	116.1

^{Source: Investor Daily}

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anton | 06 May 2014 07:03

thanks for review palmoil