In 2015, Our FFB production increased marginally by 1.5% compare to 2014 (for the combine entities). For the first nine months, we experienced lower production as impacted by the weather, and we also faced challenges in our integration and alignment process. Since Q4 2015, our production has increased significantly, returning to our normal production trend.
CPO and PK production:
Our CPO and PK production increased by 6.4% and 12.9% respectively, due to higher FFB processed and an increase of palm production efficiency (OER% and KER%). Despite our young age profile, we managed to achieve OER% above the industry standard.
Our profit and loss statement is not comparable between 2015 and 2014. 2015 represents the result of the combined entities BW Plantations Tbk. and Green Eagle Holdings while 2014 only represents Green Eagle Holdings since the acquisition was completed only at the end of December 2014.
2015 was a challenging year for the entire palm oil sector. Palm oil demand weakened and the palm oil market price declined. Our 2015 average CPO selling rice was IDR 6,827 / kg and as a result our Operating EBITDA for 2015 was IDR 752 billion giving an Operating EBITDA margin of 28% and we booked a net loss of IDR 181 billion. The significant drop from our operating EBITDA to Net loss is primarily due to high interest and depreciation expense.
As part of integration process, we also aligned our accounting policy with major changes in capitalization for interest expense and overhead expense. Current treatment is now more aligned with the maturity profile of the planted areas. This resulted in about IDR 140 billion higher interest expense or approximately 40% of the increase in financing costs. The remaining increase is primarily due to the non comparable nature of our financial statements.
In 2015, apart from coping with market conditions, we also embarked on an integration process post the acquisition which doubled our size. The process will further improve our effectiveness. In 2015, we already started to see our overhead and GnA expenses reduce by about IDR 124 billion compared to the cost incurred by the two entities in 2014.