InfoSAWIT, JAKARTA – PT Sumber Tani Agung Resources Tbk (STAA) posted solid revenue growth during the first half of 2026, supported by stronger downstream operations and improved selling prices despite lower fresh fruit bunch (FFB) and crude palm oil (CPO) production.
According to InfoSAWIT, citing the company’s quarterly report on Tuesday (August 4), STAA believes the palm oil industry has entered a more balanced market environment. Although CPO prices have normalized compared to last year’s elevated levels, global demand remains resilient, allowing the company to maintain healthy financial performance through operational efficiency and downstream expansion.
During the January–June 2026 period, STAA produced 478,244 tonnes of FFB, down 7.2 percent year-on-year. Production from nucleus estates declined 8.1 percent, while plasma estates recorded a 2.1 percent increase.
Estate productivity also softened in line with seasonal harvesting patterns. Nucleus estate yields reached 10.3 tonnes per hectare, down 11.8 percent, while plasma estate productivity stood at 8.9 tonnes per hectare, a decline of 5 percent compared to the same period last year.
Total FFB processed by the company’s mills fell 18.7 percent to 810,034 tonnes, reflecting reduced supply from both internal estates and third-party suppliers.
Consequently, CPO production decreased 16.8 percent to 176,344 tonnes, while palm kernel (PK) output dropped 19.1 percent to 38,962 tonnes.
Despite lower production volumes, STAA improved its milling efficiency. The company’s Oil Extraction Rate (OER) increased to 21.8 percent, compared to 21.3 percent a year earlier, while the Kernel Extraction Rate (KER) remained stable at 4.8 percent, indicating continued optimization of processing operations.
On the marketing side, STAA allocated a larger portion of its CPO production to its own refining facilities, reducing external CPO sales to 70,843 tonnes.
Meanwhile, downstream operations continued to strengthen, with refined product sales reaching 214,247 tonnes during the first half of the year, reflecting the growing contribution of the company’s refinery business.
Palm kernel sales totaled 16,011 tonnes, down 1.7 percent, while crude palm kernel oil (CPKO) sales declined 19.9 percent to 22,642 tonnes.
The company nevertheless benefited from stronger average selling prices. Net CPO prices, after export duties and levies, averaged Rp14,890 per kilogram, an increase of 4.8 percent year-on-year. Average PK prices rose 9.2 percent to Rp13,482 per kilogram, while CPKO prices climbed 8.6 percent to Rp29,462 per kilogram.
STAA attributed its positive financial performance to the combination of an expanding downstream business, disciplined operational management, and the full contribution of its refinery facilities, which helped offset seasonal production declines and a more normalized CPO price environment. (T2)
