TIDMDKL
RNS Number : 5078V
Dekeloil Public Limited
09 April 2019
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.
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
9 April 2019
DekelOil Public Limited ('DekelOil' or the 'Company')
Q1 2019 Production Update
DekelOil Public Limited, the West African focused agricultural
company, is pleased to provide a quarterly production update for
its 100%-owned vertically integrated Ayenouan palm oil project in
Côte d'Ivoire (the 'Project') for the three months ended 31 March
2019.
Q1 2019 Q1 2018 Increase/
(decrease)
FFB collected (tonnes) 69,340 59,531 16.5%
CPO production (tonnes) 14,921 13,605 9.7%
CPO sales (tonnes) 12,009* 13,758 -12.7%
Average CPO price per tonne EUR520 EUR548 -5.1%
PKO production (tonnes) 943 959 -1.7%
PKO sales (tonnes) 933 719 29.8%
Average PKO price per tonne EUR593 EUR987 -39.9%
PKC production (tonnes) 1,276 1,223 4.3%
PKC sales (tonnes) 1,211 1,113 8.8%
Average PKC price per tonne EUR55 EUR50 10.1%
*Excludes stock sold of 2,240 tonnes due for collection post 31
March 2019 (Q1 2018: 333 tonnes)
Production
-- 9.7% increase in crude palm oil ('CPO') production at the
Company's mill in Q1 2019 to 14,921 tonnes (Q1 2018: 13,605 tonnes)
due to:
o Materially higher CPO production in February and March 2019
compared to the previous year, more than offsetting lower year on
year volumes in January 2019
o Strong performance by new logistics centre set up to
facilitate delivery of smallholder fruit to mill
-- 69,340 tonnes of Fresh Fruit Bunches ('FFB') delivered to
mill in Q1 follows recovery in yields to more normal levels
following 2018's poor peak harvest season
o DekelOil's market share as a proportion of total volumes
harvested remains comparable with previous quarters
o FFB stock on hand at the end of Q1 was 1,050 tonnes
(negligible stock on hand at the beginning of the quarter)
-- Extraction rate of 21.8% (Q1 2018: 22.7%) due largely to a
slightly reduced percentage of oil content in fruit processed which
the Board believe is consistent with that experienced by the
Company's local competitors. Extraction rates of PKO and Kernel
Cake remain consistent with the previous year at 42.2% and 56.7%
respectively
-- PKO and Kernel Cake production in Q1 2019 would have been
materially higher than in Q1 2018, however, the Company is
currently storing approximately 900 tonnes of kernels for
processing when the high season subsides at the end of Q2 and early
Q3
Sales and Pricing
-- Q1 CPO sales of 12,009 tonnes compared to last year's record
sales performance (Q1 2018: 13,758 tonnes) - sales figures do not
include additional stock sold of 2,240 tonnes which was due for
collection post 31 March 2019 (Q1 2018: 333 tonnes)
-- Successful strategy to secure sales of the Company's CPO at a
premium to international prices although international benchmark
prices remain weak
o CPO sales secured at an average 9.5% premium to international
prices. Whilst the Company will continue to push for strong premium
pricing this is likely to be lower during the back end of the high
season as local CPO stocks increase.
-- The Company remains optimistic CPO pricing will improve over
next 12 months due to both cyclical and structural factors
o Increased biodiesel consumption, of which CPO is the primary
feedstock, remains a key agenda item in Indonesia, the largest
producer of CPO
-- Strong recovery in gross margin percentages to more normal
levels following a normalisation in raw material costs and higher
premiums on international CPO prices compared to 2018
DekelOil Executive Director Lincoln Moore said, "The strong
rebound in CPO volumes produced at our mill during Q1 2019 confirms
last year's poor harvest was the anomaly many in the local palm oil
industry had predicted. We remain optimistic that Q2 2019 will also
be stronger than Q2 2018."
"Elsewhere in our portfolio of West African-focused agricultural
projects, we will shortly be providing a detailed update on our
large-scale cashew processing project at Tiebissou, as we enter the
12-month construction phase ahead of first production in early
2020. At that point, our quarterly production updates will cover
not one, but two producing projects, reflecting the
multi-commodity, multi-project agriculture company that DekelOil
will have become."
In addition, application has been made to the London Stock
Exchange for the admission of a total of 1,067,659 ordinary shares
of EUR0.0003367 each ("Ordinary Shares") issued to certain advisers
in settlement of fees for services provided ("Admission"). This
figure includes 600,000 Ordinary Shares which will be issued to
Vince McAleer, CEO of the Company's subsidiary DekelOil Côte
d'Ivoire SA, as part of his base salary remuneration. It is
expected that Admission will become effective on or around 15 April
2019. Following Admission, the Company's issued share capital will
consist of 353,341,082 Ordinary Shares.
** ENDS **
For further information please visit the Company's website or
contact:
DekelOil Public Limited
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Cantor Fitzgerald Europe (Nomad and
Joint Broker)
David Foreman
Richard Salmond +44 (0) 207 894 7000
VSA Capital (Joint Broker)
Andrew Monk (Corporate Broking)
Andrew Raca (Corporate Finance) +44 (0) 203 005 5000
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman +44 (0) 207 236 1177
Notes:
DekelOil Public Limited is a multi-project, multi-commodity
agricultural company focused on West Africa. It has a portfolio of
projects in Cote 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 70,000tpa crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in 2020; and a second palm oil project
in Guitry which is under development.
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
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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