The low rainfall we saw during last year's El Niño continued to impact our FFB production up to Aug 2016. But, as you can see from our FFB Production trend, in Sept 2016 we reached 122,308 metric tons, a significant jump of 35% compared to our monthly average from Jan to Aug 2016, and a 19% increase from last year's Sept production. We believe Q4 2016 will see such a high YoY growth that production growth for the full year will be positive, a very significant improvement.
CPO and PK production:
CPO and PK production YTD Q3 2016 decreased by 25% and 28% respectively, because of lower FFB production and lower FFB purchases available from 3rd parties. Despite the declines, we managed to maintain our average YTD Q3 2016 OER% at 24%.
As of the end of Oct 2016, we have begun commissioning our new CPO mill in West Kalimantan with a capacity of 45 ton of FFB per hour. This will help to boost our CPO production in Q4 2016.
Despite a quarterly improvement in both production and price in Q3 2016 compared to the previous quarter, overall prices and production YTD in 2016 were lower compared to 2015, resulting in a 23% decline in revenues to IDR 1,595 billion.
We booked a gross profit of IDR 90 billion in Q3 2016, 17% higher than the average quarterly 2016 gross profit. Due to additional mature areas in 2016, our YTD Q3 2016 depreciation and interest expense increased compared to YTD Q3 2015, resulting in lower net profit for 2016 so far.
We did manage to improve our EBITDA margin in Q3 2016, which brought up our YTD Q3 2016 EBITDA margin to 25% from 22% in the first half of 2016.
In financing, we secured new bank facilities of IDR 1.5 tn in Q3 2016 to improve our liquidity. Despite the new facilities, our net debt level remains almost unchanged and it is not expected to change significantly in the near future as our focus remains on existing operations rather than new planting.
As we expect high production growth and continuous price recovery, we are expecting a very strong financial result in the last quarter of this year.