Dekeloil Public Limited Full Year Production Update (3019U)
January 17 2017 - 2:00AM
UK Regulatory
TIDMDKL
RNS Number : 3019U
Dekeloil Public Limited
17 January 2017
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
17 January 2017
DekelOil Public Limited ('DekelOil' or the 'Company')
Full Year Production Update
DekelOil Public Limited, operator and 100% owner of the
vertically integrated Ayenouan palm oil project in Côte d'Ivoire
(the 'Project'), is pleased to provide a production update for the
year ended 31 December 2016.
FY 2016 FY 2015 Increase
/ Decrease
Product Sales* EUR26.1m EUR23.4m 12%
FFB collected (tonnes) 171,301 151,930 13%
CPO production
(tonnes) 39,111 35,770 9%
CPO Sales (tonnes) 39,498 35,573 11%
Average CPO price
per tonne EUR575 EUR604 -5%
PKO production
(tonnes)** 2,851 492 480%
PKO Sales (tonnes)** 2,895 425 581%
Average PKO price
per tonne EUR808 EUR743 9%
PKC production
(tonnes)** 3,468 712 387%
PKC Sales (tonnes)** 3,732 417 795%
Average PKC price
per tonne $43 EUR42 3%
* Kernel Crushing facility commenced operations in November
2015. Kernel sales ceased and PKO and PKC sales commenced
** There may be some minor amendments to final Product Sales
following preparation of full year audited accounts
-- Production for full year 2016 totalled 39,111 tonnes of CPO,
9% higher than 35,770 tonnes of CPO in FY 2015
-- Following strong like for like sales in October 2016 fresh
fruit bunches ('FFB'), quantities were lower than expected in
November and December. This was a West African region-wide issue
where all key players experienced a similar situation. Agriculture
experts have been unable to point to any one specific reason,
however, January 2017 has seen FFB quantities pick up
considerably
-- CPO prices are currently at their highest level for three
years. The CPO price has consistently increased over the course of
2016 with sales prices in December of EUR700 per tonne, 29% higher
than H1 2016 at EUR542 per tonne. Sales prices have continued to
increase in January 2017
-- Production and sales at the Company's Kernel Crushing plant
continue to exceed management's expectations with the Palm Kernel
Oil extraction rate consistently above 42% (H1 2016 41%) and the
average sales prices in December of EUR899, 15% higher than H1 2016
at EUR781 per tonne
DekelOil Executive Director Lincoln Moore said, "This is our
third consecutive year of CPO production growth. In our view,
whilst the growth experience in 2016 is pleasing, the full year
outcome would have been even better if not for the CPO pricing
issues in Q2 2016 caused by the currency crisis in Nigeria and
unusually low production during the low season in the second half.
Importantly, we are now operating in a far more attractive CPO
price environment than we experienced in 2016."
"While to some degree, we cannot control variations in periodic
FFB harvests, we can maximise the value we extract from each FFB
that is delivered to Ayenouan. We have sought to optimise
production through several actions. Last year we constructed the
kernel crushing plant which has added significantly to our 2016
results and already paid back the capital investment made. We also
recently announced further investments including an empty fruit
press to extract additional CPO from empty fruit bunches and extra
storage capacity to allow us to maximise sale prices achieved by
giving us the flexibility to choose when to sell our CPO.
"Having recently increased our interest in Ayenouan to 100%, we
now have full control of a highly cash generative platform with
which to deliver on our objective to transform DekelOil into a
leading West African focused palm oil producer and I look forward
to providing further updates on our progress in due course."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
** ENDS **
For further information please visit the Company's website or
contact:
DekelOil Public Limited
Youval Rasin
Shai Kol +44 (0) 207
Lincoln Moore 236 1177
Cantor Fitzgerald Europe
(Nomad and Broker)
Andrew Craig +44 (0) 207
Richard Salmond 894 7000
Beaufort Securities Limited
(Broker)
Zoe Alexander +44 (0) 207
Elliot Hance 382 8300
Optiva Securities Limited
(Broker)
Christian Dennis +44 (0) 203
Jeremy King 137 1903
St Brides Partners Ltd (Investor
Relations)
Elisabeth Cowell +44 (0) 207
Frank Buhagiar 236 1177
Notes:
DekelOil Public Limited is a low cost producer of palm oil in
West Africa, which it is focused on rapidly expanding. To this end,
it has an 85.75% interest in one of the largest oil processing
mills based in Côte d'Ivoire, which has a capacity of 70,000 tons
of CPO. Feedstock for the Mill comes from several co-operatives and
thousands of smallholders, however it also has nearly 1,900
hectares of its own plantations. Furthermore, it has a world-class
nursery with a 1 million seedlings a year capacity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDEAAFKFDKXEAF
(END) Dow Jones Newswires
January 17, 2017 02:00 ET (07:00 GMT)
Dekel Agri-vision (LSE:DKL)
Historical Stock Chart
From Apr 2024 to May 2024
Dekel Agri-vision (LSE:DKL)
Historical Stock Chart
From May 2023 to May 2024