KONTAN.CO.ID - JAKARTA. PT Cisadane Sawit Raya Tbk (CSRA) is optimistic that the positive momentum in crude palm oil (CPO) price growth will significantly impact the company’s performance as it enters 2025.
According to data from Trading Economics, the global market price of CPO was recorded at RM 4,527 per ton as of Thursday (January 2). Over the past year, CPO prices have surged by 19.53% year-on-year (yoy), even reaching RM 5,214 per ton on November 11, 2024.
In a previous report, it was highlighted that the potential for further CPO price increases remains strong heading into 2025. This growth is driven by the mandatory B40 biodiesel policy and rising demand for CPO from China ahead of the Lunar New Year celebrations.
Seman Sendjaja, Director of Cisadane Sawit Raya, stated that the continuation of the bullish CPO price trend in early 2025 would greatly influence the company’s performance. He emphasized that this momentum must be optimally leveraged, given the volatile nature of the CPO market.
In general, CSRA projects better sales and profit growth in 2025 compared to the same period in 2024, provided that all supporting factors align with the company’s growth trajectory.
“We are optimistic that the company’s performance in the near term, particularly in the first quarter of 2025, will improve,” said Seman on Monday (December 30).
Although the company has not officially disclosed its CPO production figures, CSRA management acknowledged that the 2024 production target of 60,000 to 70,000 tons had not been met.
According to CSRA, unpredictable weather conditions remain a key challenge that must be mitigated effectively, as oil palm cultivation is heavily dependent on favorable environmental conditions.
Nonetheless, CSRA anticipates higher CPO production in 2025 compared to 2024. This optimism is bolstered by the ongoing construction of the company’s third palm oil mill (PKS III) in South Sumatra, which is expected to commence operations in the second half of 2025. The mill will have a production capacity of 30 to 45 tons of CPO per hour.
“This new facility will significantly enhance the company’s CPO production capacity,” Seman added.
Previously, CSRA operated PKS I in Labuhan Batu, North Sumatra, with a capacity of 45 tons per hour, and PKS II in South Tapanuli, North Sumatra, with a capacity of 30 tons per hour.
Furthermore, CSRA remains unconcerned about potential weakening consumer purchasing power for end-products derived from CPO.
According to Seman, most downstream palm oil products, such as cooking oil, are primary necessities. Therefore, demand for CPO-based products will persist regardless of fluctuations in the national economic landscape.
CSRA management also reaffirmed the company’s commitment to efficiency and production innovation in producing CPO and kernel.
“We consistently maintain discipline in cost management and agile mechanization practices as we prepare for 2025,” he concluded.
Source: Kontan