BW Plantation

PT BW Plantation Tbk is a foreign investment company (PMA) engaged in Indonesia's palm oil sector. Being a mid-sized agricultural company, BW Plantation's primary business activities are developing, cultivating, and harvesting fresh fruit bunches (FFB), and extracting crude palm oil (CPO) and palm kernel (PK). The company is equipped with three CPO mills with a total processing capacity of 135 tons per hour. In 2014, construction of a fourth processing plant will be completed and the construction of a fifth will commence.

Through its subsidiaries, BW Plantation owns the right to 88,305 hectares of land spread across nine oil palm plantations. All these assets are located on Kalimantan.

Profile

Industry Sector Agriculture
Industry Sub Sector Plantation
Established 06 November 2000
Listed 27 October 2009
Listed Company Code BWPT
Listed Shares 4,051,770,34
Dividend Yes
Major Shareholders (>5%) BW Investindo (38.75%)
Fendalton Investments Pte Ltd (23.25%)
JP Morgan Chase Bank NA Re Non-Treaty Clients - 215 (5.57%)
Key Subsidiaries Wana Catur Jaya Utama
Bumilanggeng Perdanatrada
Adhyaksa Dharmasatya
Sawit Sukses Sejahtera
Satria Manunggal Sejahtera
Agrolestari Kencana Makmur
Main commodities


Stock Quote BW Plantation - BWPT:

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Business Summary

At the start of 2014, BW Plantation managed a total of 88,305 hectares of land, comprised of:

47,378.90 hectares under Land Cultivation Rights
40,846.85 hectares under a Location Permit
79.60 hectares under Building Rights, where the company’s processing mills are located


BW Plantation's Production Figures:

      2011     2012     2013
FFB Nucleus
(in tons)
 441,872  529,643  623,405
FFB Plasma
(in tons)
  16,345   23,229   32,336
Crude Palm Oil
(in tons)
 110,771  125,196  141,195
Palm Kernel
(in tons)
  18,395   21,645   23,610


BW Plantation's Sales Volume:

       2011      2012     2013
Crude Palm Oil (CPO)
(in tons)
  106,735   119,624   145,836
Average CPO Selling Price
(thousand rupiah/ton)
    7,447     7,179     6,986
Palm Kernel (PK)
(in tons)
   21,280    19,752    23,840
Average PK Selling Price
(thousand rupiah/ton)
    4,388     3,201     3,227

Source: BW Plantation, Annual Report 2013


BW Plantation's Financial Highlights:

       2008      2009      2010      2011      2012      2013
Net Sales     513.7     584.1     712.2     888.3     944.3   1,144.2
Gross Profit     306.0     365.0     467.2     614.0     571.2     541.2
Operating Profit     244.9     258.8     371.0     483.0     417.3     325.6
Net Profit     119.8     167.5     243.6     320.4     262.2     181.8
EBITDA     268.0     289.6     410.3     537.3     517.1     481.2
Total Assets   1.016.5    1.622.9   2.655.9   3.589.0   4,913.0   6,200.4
Total Liabilities
    743.3     717.4   1.527.1   2.163.1   3,246.8   4,015.7
Earnings per Share¹     40,62     50,67     60,34     79,35     64,83     44,32
Dividend per Share      n.a.      n.a.      n.a.        9       12  

in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: BW Plantation, Annual Report 2013


Future Prospects of the Indonesian Palm Oil Industry

Although international turmoil has resulted in a significant decline of the global palm oil price (and made the government introduce historically low export duties in 2013), the palm oil business in Indonesia is promising - on the long term - due to a number of reasons:

Big profit margins, while the product is simple to produce.
Large and increasing international demand.
Crude palm oil (CPO) production costs in Indonesia are the lowest worldwide.
Higher rates of productivity compared to other edible oil products.
Bio-fuel is expected to increase its significance at the expense of expensive gasoline.

What are matters that hamper development of Indonesia's palm oil industry:

Awareness of the need for more environment-friendly policies.
Land disputes with local communities due to a lack of clarity regarding land ownership.
Legal and regulatory uncertainty.
High logistics costs due to Indonesia's lack of quality and quantity of infrastructure.

Please visit our Palm Oil in Indonesia section to read more about this topic.


Future Projection BW Plantation's Financial Highlights:

      2012      2013     2014F     2015F
Net Sales    944.3    1,144.2    1,645.0    2,098.0
Net Profit    262.2     181.8     386.0     539.0
EBITDA    517.1     481.2     836.0    1,107.0
P/E Ratio (x)
    20.1      29.0      15.1      10.8

in billion IDR rupiah, except stated otherwise
Source: Ciptadana Securities

Contact Details

Menara Batavia, 22nd Floor
Jalan K.H. Mas Mansyur Kav. 126,
Jakarta - 10220
Phone: +62 21 574 0988
Fax: +62 21 574 0987
Email: investor@bwplantation.com
www.bwplantation.com

Location