Bumitama Agri's crude palm oil production up 11.1% in Q4

But CPO production for the whole year saw a 5.6% decline.

As Bumitama Agri sees improved fresh fruit bunch yields in the past quarter, it also recorded higher CPO production, up 11.1% YoY to 247,000 tonnes.

According to UOB KayHian, oil extraction rate (OER) improved QoQ and YoY to 22.5% in 4Q16. However, CPO production for the whole year dropped 5.6% YoY due to the lagged impact from the severe drought.

Meanwhile, UOB said Bumitama's 4Q16 average CPO price is likely to have grown marginally QoQ and to be significantly higher YoY.

"The industry average for CPO spot prices in 4Q16 improved 5.1% QoQ and surged YoY by 35.2%. The improvement in CPO prices was mainly due to tight supply and low inventory levels. For 2016, average CPO prices were up 14.5% YoY," the brokerage firm said.