Eagle High Plantations (BWPT) Targets Double-Digit Net Profit Increase in 2024

CORPORATE STRATEGIC - JAKARTA. Palm plantation issuer, PT Eagle High Plantations Tbk (BWPT) is targeting positive performance growth throughout this year. They aim for a net profit in 2024 to increase by double digits compared to the previous year.

BWPT's CEO Henderi Djunaidi said the net profit target for this year will continue the tradition of double-digit growth in 2024.

“January 2024 has already shown a growth in fresh fruit bunch production by 20% compared to January of the previous year,” Henderi revealed, to Kontan.co.id, Tuesday (13/2).

BWPT has not officially released the 2023 financial report, but if we look at the realization up to the third quarter, BWPT's operating income was recorded to decrease by 6.42% year on year (YoY) to IDR 3.21 trillion.

On the other hand, from the bottom line perspective, BWPT recorded a positive performance seen from the increase in the company's net profit which stood at IDR 104.3 billion, compared to the same period last year which suffered a loss of IDR 15.44 billion.

Henderi claimed BWPT will close the year 2023 with double-digit growth just like the previous quarter. Where BWPT still maintains a double-digit increase in the composition of Yield Per Hectar and Nett Profit.

BWPT also plans to build new palm oil mills (PKS) for the next three years.

On August 8, 2023, BWPT conducted a groundbreaking for a PKS with a capacity of 30 tons per hour in East Kalimantan Plantation.

The palm oil mill in East Kalimantan will be accelerated in its construction and is targeted to start operating in the first quarter of 2025, “Because the existing mill is currently operating at maximum capacity,” he added.

For this year 2024, BWPT also plans to build a Kernel Crushing Plant (KCP) in one of BWPT's factories in Central Kalimantan, where this KCP is a new revenue stream for BWPT at the same time BWPT will also build a Biogas Power Plant (PLTBg) which is also located in Central Kalimantan.

BWPT has budgeted a capital expenditure (Capex) allocation of IDR 300 billion. This year's capex funds are focused on the construction of a mill extension in East Kalimantan, KCP, and Biogas as the 2024 business plan, which is expected to add to the downstream of the green project as a form of BWPT's commitment to ESG.

“Starting this year until 3 or 4 years ahead, BWPT has budgeted a capex up to a total of IDR 1 trillion,” he concluded.