TIDMDKL
RNS Number : 6037S
Dekel Agri-Vision PLC
10 July 2020
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Half Year Production Update
Dekel Agri-Vision Plc, the West African focused agricultural
company, is pleased to report a production update for its
100%-owned, vertically integrated palm oil project at Ayenouan in
Côte d'Ivoire for the three and six month periods ended 30 June
2020.
Stronger year on year global Crude Palm Oil ('CPO') prices and
better extraction rates achieved are expected to more than offset
lower CPO volumes produced during the first half of the year ('H1
2020'). The Company therefore expects to report an improved trading
and financial performance for the six months to 30 June 2020
compared to H1 2019.
Q2 2020 Q2 2019 Change H1 2020 H1 2019 Change
FFB Processed
(tonnes) 50,293 62,577 -19.63% 106,188 131,917 -19.50%
CPO production
(tonnes) 11,801 14,013 -15.79% 23,882 28,934 -17.46%
CPO Sales
(tonnes) 12,858 14,693 -12.49% 23,906 26,702 -10.47%
Average CPO
price per
tonne EUR548 EUR 488 12.30% EUR602 EUR 505 19.21%
PKO production
(tonnes) 944 953 -0.94% 1,715 1,896 -9.55%
PKO Sales
(tonnes) 478 606 -21.11% 1,002 1,539 -34.93%
Average PKO
price per
tonne EUR588 EUR 583 0.86% EUR628 EUR 589 6.6%
PKC production
(tonnes) 1,514 1,249 21.23% 2,683 2,525 6.26%
PKC Sales
(tonnes) 1,863 1,063 75.25% 2,690 2,274 18.30%
Average PKC
price per
tonne EUR59 EUR 55 7.27% EUR60 EUR 55 9.09%
Production
-- In line with the experience of all operators in the region,
Dekel suffered a drop in FFB harvested after a strong March and
April resulting in lower year on year CPO volumes for May and
June
-- Pleasingly, Dekel saw higher quality FFB than last year,
particularly in Q2 2020 where the extraction rate achieved was
23.6% (Q2 2019 22.4%).
-- H1 2020 Palm Kernel Oil ('PKO') production of 1,715 tonnes
(Q2 2020: 944 tonnes) compares to 1,896 tonnes in H1 2019 (Q2 2019:
953 tonnes)
-- 6% increase in Palm Kernel Cake ('PKC') production in H1 to
2,683 tonnes (H1 2019: 2,525 tonnes)
Sales and Pricing
-- 19.2% increase in CPO prices to EUR602 per tonne in H1 2020
(H1 2019: EUR505) offset lower volumes sold - H1 2020: 23,906
tonnes of CPO sold (H1 2019: 26,702 tonnes)
-- Strong extraction rates and higher CPO prices expected to
lead to an improvement in year on year H1 financial performance
-- Operations have continued as normal despite the COVID-19
global outbreak, however CPO Pricing has been adversely
affected
-- CPO is currently trading at approximately US$600 per tonne in
line with recovery seen in international prices from lows of US$500
as global markets reopened following COVID-19 associated
lockdowns
o Global CPO pricing benchmarks prior to the pandemic traded at
around US$850 per tonne in January 2020
-- Reduction in PKO sales in H1 2020 reflects impact of COVID-19
on demand for premium PKO oil; the Company expects higher than
normal stock levels will unwind during the H2 2020 low season
Dekel Agri-Vision Plc Executive Director Lincoln Moore said: "It
is particularly encouraging that, notwithstanding the backdrop of
the unprecedented measures taken by governments in response to
COVID-19, we expect to report a more profitable H1 financial
performance compared to last year. This has been possible because
of the higher extraction rates achieved, improving CPO prices and
the dedication and professionalism of the team in Côte
d'Ivoire.
"During H2, we will continue to focus on extracting as much
value as possible out of each fruit that is delivered to the mill
for processing. With momentum building behind the development of
our large scale cashew processing project at Tiebissou, which
remains on course to be completed in Q2 2021, we believe Dekel is
well placed to deliver its objective to scale up and diversify its
revenue profile. I look forward to providing further updates on our
progress."
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
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Arden Partners Plc (Nomad and Joint Broker)
Paul Shackleton / Ruari McGirr /
Dan Gee-Summons (Corporate Finance)
Simon Johnson (Corporate Broking) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman
Megan Dennison +44 (0) 207 236 1177
Notes:
Dekel Agri-Vision Plc is a multi-project, multi-commodity
agriculture company focused on West Africa. It has a portfolio of
projects in Côte d'Ivoire at various stages of development: a fully
operational palm oil project in Ayenouan where fruit produced by
local smallholders is processed at the Company's 60,000tpa crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in Q2 2021.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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