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DekelOil Public Limited, operator and 51% owner of an established, vertically integrated palm oil project in Côte d’Ivoire, has said that it has received confirmation from the Government of the Côte d’Ivoire that Dekel Oil successfully met the conditions regarding its tax exemption application under the Investment incentives code, as administered by the government agency CEPICI.
As a result profits at its 60 t/hr capacity Crude Palm Oil (‘CPO’) extraction mill (‘the Mill’) are fully exempt from corporation tax for a period of 13 years.
The tax exemptiongreatly enhances the already highly attractive economics of the Mill and follows the commencement of CPO production ahead of schedule, as announced on 18 February 2014. With effect from 1 January 2014, profits at the Mill qualify for a 100% corporation tax exemption lasting a period of 13 years to 31 December 2026. For the year 1 January to 31 December 2027, the exemption will fall to 50% and will be reduced further to 25% for the following year.
DekelOil Executive Director Lincoln Moore said, “A 13 year corporation tax exemption for one of West Africa’s largest crude palm oil mills is a valuable asset and provides further visibility to our revenues and cashflows going forward. We expect the Mill to process a minimum of 150,000 tons of fruits and produce a minimum of 35,000 tons of CPO in 2014, which will generate considerable revenues for DekelOil.
“In line with our strategy, we will look to increase CPO production at the Mill in 2015 and beyond towards its full capacity of 70,000 tonnes per annum, as we look to rapidly build revenues that can be reinvested into our vertically integrated ‘seed to palm oil’ business and in the process build DekelOil into a leading West African palm oil company.”
