Dekel Agri-Vision PLC July 2020 Palm Oil Production Update (5701V)
August 10 2020 - 1:00AM
UK Regulatory
TIDMDKL
RNS Number : 5701V
Dekel Agri-Vision PLC
10 August 2020
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
10 August 2020
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
July 2020 Palm Oil Production Update
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to provide a production and sales update for
its Ayenouan palm oil project in Côte d'Ivoire (the 'Project') for
July 2020. In line with recent trends, trading during July 2020 has
benefited from improving global crude palm oil ('CPO') prices,
which continue to recover from the COVID-19 induced lows
experienced earlier in the year. Together with high extraction
rates, this has offset lower CPO production volumes at Ayenouan. A
table providing a breakdown of production, sales and pricing levels
achieved at Ayenouan during July 2020 is set out below.
As previously announced, the Company is issuing CPO production
figures on a monthly basis to provide shareholders with increased
visibility on operations and trading during the pandemic and
associated market volatility. The Company will continue to provide
monthly data until 30 September at which point it will consider
reverting to quarterly data. In the meantime, Ayenouan continues to
operate with relatively minimal disruption from COVID-19 however,
Dekel continues to adhere to government advice and guidance in
order to help ensure the wellbeing of staff and the local
communities in which it operates in.
July 2020 Production
July 2020 July 2019 Increase/
(decrease)
FFB processed (tonnes) 7,975 9,780 -18.5 %
CPO production (tonnes) 1764 2032 -13.2 %
CPO sales (tonnes) 1819 3533 -48.5 %
Average CPO price per tonne EUR 502 EUR 480 4.5 %
PKO production (tonnes) 172 176 -2.3 %
PKO sales (tonnes) 137 197 -30.5 %
Average PKO price per tonne EUR 595 EUR 489 21.7 %
PKC production (tonnes) 406 483 -15.9 %
PKC sales (tonnes) 336 762 -55.9 %
Average PKC price per tonne EUR 59 EUR 56 5.4%
Production
-- 1,764 tonnes of CPO produced at Ayenouan in July 2020 compared to 2,032 tonnes in July 2019
o Lower production follows a reduction in fresh fruit bunches
('FFB') delivered to the mill for processing in line with the
experience of other operators in the region
-- Higher extraction rates due to higher oil content in FFB have
continued to offset lower production
o July 2020 CPO extraction rate came in at 22.3% compared to
20.2% July 2019
-- PKO production of 171.5 tonnes similar to July 2019 as a
result of higher than normal kernel extraction rates
-- Lower month on month PKC production of 406 tonnes (July 2019:
483.06 tonnes) due to lower volumes of FFB delivered to the
mill
Sales and Pricing
-- Year on year CPO sales performance comparison distorted by
3,000 tonnes of CPO which were held in storage in June 2019 and
sold in Jul/Aug 2019
-- 1,819 tonnes of CPO sold at average prices of EUR502 per
tonne in July 2020 - a 4.5% increase on the 3,533 tonnes sold at
EUR480 per tonne in July 2019
-- CPO prices expected to show material improvement in August
2020 compared to July 2020 due to jump seen in international prices
to around US$715 per tonne at the time of writing as global markets
reopen
o Typically there is a 4-5 week lag before local prices reflect
moves in international benchmarks therefore we expect to achieve a
material increase in prices in August compared to July
-- Reduction in PKO sales to 137 tonnes (July 2019: 197 tonnes)
due to timings of sales and deliveries
o Over 50% of the 950tn of PKO stock on hand at July month end
has now been sold and we expect will leave to material increases in
sales in August and September as it is collected by customers from
our tanks
Dekel Agri-Vision Executive Director Lincoln Moore said, "While
only one month's data, the recent trend of higher prices and
extraction rates offsetting lower CPO volumes has continued in July
2020. Set against the backdrop of the ongoing COVID-19 pandemic,
this is a creditable outcome, particularly as we recently announced
at the half year stage that we expect to report a more profitable
H1 financial performance compared to last year.
"With international palm oil prices recovering strongly to over
$700 per tonne at the time of writing combined with the 4-5 week
lag it takes for local prices to reflect international moves, we
are confident that the positive tailwind of higher pricing levels
will at least be maintained in August. Together with progress
continuing to be made at Tiebissou where our large-scale cashew
processing project remains on track to commence production in Q2
2021, I look forward to providing further updates as we look to
transform Dekel into a multi-project, multi-commodity agriculture
business."
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 at
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
including 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 and 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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