TIDMDKL
RNS Number : 9937B
Dekeloil Public Limited
10 April 2017
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
10 April 2017
DekelOil Public Limited ('DekelOil' or the 'Company')
Q1 2017 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 announce a record quarterly
production of crude palm oil ('CPO') for the three months ended 31
March 2017, as well as a 36.6% like for like increase in total Q1
sales revenues to EUR9.7m.
Q1 2017 Q1 2016 Increase
/ Decrease
Product Sales (excluding
nursery) EUR9.7m EUR7.1m 36.6%
Fresh Fruit Bunches ('FFB')
collected (tonnes) 72,083 65,610 9.9%
CPO production (tonnes) 16,398 15,141 8.3%
CPO Sales (tonnes) 11,871 12,082 -1.7%
Average CPO price per tonne EUR736 EUR532 38.3%
Palm Kernel Oil ('PKO')
production (tonnes) 996 983 3.1%
PKO Sales (tonnes) 895 851 5.3%
Average PKO price per tonne EUR1,008 EUR743 35.6%
Palm Kernel Cake ('PKC')
production (tonnes) 1,228 1,355 -9.4%
PKC Sales (tonnes) 855 1,014 -15.7%
Average PKC price per tonne EUR53 EUR43 24.1%
CPO Inventory 4,633 3,599 28.7%
-- Record like for like CPO production registered for the first
quarter with record monthly production recorded in January,
February and March
-- April production has continued strongly and is well on track
to exceed April 2016 production results
-- Year on year Q1 sales quantities were marginally lower -
management believes this is due to buyers withholding some
purchasing in March to take advantage of predicted lower prices in
April
o As prices rose during February and March, the Company was able
to take advantage of higher prices for month end stock on hand
o Q1 stock on hand 4,633 tonnes of CPO includes 1,000 tonnes
pre-sold at March prices (not included in Q1 Sales)
-- New buyers are entering the Cote d'Ivoire market on the back
of growth in the country's CPO production and management expects
inventory levels to unwind at the beginning of H2 2017
-- Significantly higher year on year sales prices for CPO and PKO during Q1
o CPO prices in April have softened slightly to approximately
c.EUR700 per tonne but remain well above H1 2016 prices of EUR540
per tonne
-- Higher production, prices and sales have translated into
record quarterly revenues of EUR9.7m, a 36.6% increase compared to
Q1 2016
-- 22.8% CPO extraction rate during Q1 2017 (Q1 2016: 23.1%) -
laboratory tests show reduction is due to lower oil content in the
FFBs confirming that the Mill continues to operate efficiently
o New Empty Fruit Bunch press became operational in March and is
estimated to be contributing an additional 0.5% to the overall
extraction rate
o Towards the end of Q1, extraction rates have increased
considerably and are currently around 24% on a daily basis and the
Company remains well on track to exceed H1 2016 levels of 23.1%
-- The PKO extraction rate of 42.3% is above the 39.9% achieved
in Q1 2016 and appears to be stabilising at this level. In order to
maximise Mill efficiency during the high season, approximately
550tn of nuts (expected to yield approximately 275tn of Kernels)
are being stored and will be processed following the high season in
early Q3
-- New 3,000 tonne storage tank expected to be operational in the next few weeks
-- Gross margins and EBITDA margins are currently tracking
higher than H1 2016 margins of 26.0% and 19.4% respectively
DekelOil Executive Director Lincoln Moore said, "Coinciding with
the commencement of Côte d'Ivoire's peak harvesting season and
significantly higher year on year palm oil prices, this latest
record quarterly performance has come at an opportune time.
"Having recently gained a 100% ownership of Ayenouan, our
shareholders stand to benefit fully from the operational progress
being made on the ground, starting with the distribution of the
maiden dividend. Ayenouan is proving to be the highly cash
generative platform we always believed it would be, and we intend
to capitalise on this by moving forward with the expansion phase of
our strategy."
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
DRLLLFVESAIAIID
(END) Dow Jones Newswires
April 10, 2017 02:00 ET (06:00 GMT)
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