In the first half of 2016, we produced 555,882 metric tons of FFB, a decrease of 14% compared to the first half of 2015. We continue to experience a down trend in production due to the prolonged impact of an El Niño induced water deficit in our harvesting areas. We believe the impact of the low production trend has been felt throughout Indonesia. Looking at crop distribution, we expect better production in the second half of 2016, which will result in flattish growth for the full year when compared to 2015.
CPO and PK production:
CPO and PK production in the first half of 2016 decreased by 23% and 27% respectively, due to lower FFB production and lower FFB purchases from 3rd parties. In term of efficiency, our average OER% for the first half of 2016 was 24.5%, which remains above the industrial standard and increased by 4% from last year.
In the first Half of 2016, our revenue was IDR 1,101 billion, a decrease of 26% compared to the first half of 2015, due to both lower sales volume and price.
Gross profit came in at IDR 154 billion but we booked a net loss of IDR 207 billion in the first half of 2016 as a larger mature area resulted in higher interest expense, which had previously been capitalized.
Despite efforts to reduce our cash cost of production, the impact of lower sales prices reduced our EBITDA in the first half of 2016. EBITDA fell IDR 192 billion to IDR 245 billion compared to IDR 437 billion in the first half of 2015. As a result, our EBITDA Margin also decreased to 22%.
Barring unforeseen circumstances, with better production and higher CPO and PK prices, we expect improved profitability in the second half of 2016.