August Palm Oil Production Update

RNS Number : 1886L

Dekel Agri-Vision PLC

09 September 2021

 

Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers

Dekel Agri-Vision Plc ('Dekel' or the 'Company')

August Palm Oil Production Update

Dekel Agri-Vision Plc (AIM: DKL) , the West African agriculture company focused on building a portfolio of sustainable and diversified projects, is pleased to provide an August production update for its 100% owned Ayenouan palm oil project in Côte d'Ivoire.

Key Highlight s

· Positive August like for like production and pricing results recorded across all key production metrics

· 1,852 tonnes of CPO sold in August 2021, 25.0% higher than August 2020 as stock on hand post the high season was sold into a buoyant local CPO market

· PKO sales 181.3% higher than August 2020 as a significant portion of high season stock on hand was sold during the month

· CPO prices continue to remain very strong with average prices achieved in August 2021 of €947, a 76.0% increase in average realised CPO prices compared to August 2020

· International CPO prices continue to remain at 10 year highs.  Should prices remain around this level over the coming months, we are very well placed to continue this period of strong momentum into the next high season commencing mid January

Lincoln Moore, Dekel 's Executive Director , said: "International prices have continued to remain at cyclical high levels as stock levels in the main producing countries remain tight and key buying countries continue to restock as global markets continue to reopen. Coupled together with robust production levels to date in H2 2021, the palm oil project is continuing to perform extremely well in 2021."

"With the upcoming half year report expected to show a more profitable H1 financial performance compared to last year, and with the large scale cashew processing project remaining on course to commence first production within the next 60 days, Dekel is well placed to deliver a material step up in financial performance over the next 6-12 months and I look forward to providing further updates in due course." 

	Aug-21	Aug-20	Change
FFB processed (tonnes)	8,469	7,044	20.2%
CPO production (tonnes)	1,678	1,581	6.1%
CPO Sales (tonnes)	1,852	1,482	25.0%
Average CPO price per tonne	€947	€538	76.0%
PKO production (tonnes)	169	101	67.3%
PKO Sales (tonnes)	571	203	181.3%
Average PKO price per tonne	€832	€554	50.2%
PKC production (tonnes)	293	196	49.5%
PKC Sales (tonnes)	211	239	-11.7%
Average PKC price per tonne	€80	€60	33.3%

Crude Palm Oil

· Production: Like for like CPO production increased 6.1% in August 2021 compared to August 2020.  This resulted from high FFB quantities offsetting weaker extraction rates

· Sales: A continuation of the sale of stock on hand at the end of the high season, led to a 25.0% increase in sales in August 2021 compared to August 2020

· Prices: Critically, CPO sales prices remained very strong at €947, 76.0% higher than prices achieved in August 2020

o  International CPO prices continue to trade at multi-year highs in a range of €900 - €1,025 per tonne

Palm Kernel Oil ('PKO') and Palm  Kernel Cake ('PKC')

· Production: PKO and PKC production increased 67.3% and 49.5% respectively as processing of material on hand normalised following a period of mechanical disruption in July

· Sales:  181.3% increase in PKO sales quantities as stock on hand post the high season continued to unwind

· Prices: 50.2% increase in PKO prices to €832 per tonne compared to August 2020.  As with previous months, local PKO prices continue to slowly improve with August being our highest prices achieved to date this year

Production Updates

The Company will continue issuing CPO production figures on a monthly basis to provide shareholders with visibility on operations and trading during the global COVID-19 pandemic. 

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	[phone]
Arden Partners Plc (Nomad and Joint Broker) Paul Shackleton / Ruari McGirr / Akhil Shah (Corporate Finance)	[phone]
Optiva Securities Limited (Joint Broker) Christian Dennis Jeremy King	[phone]

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 commissioning in September 2021. 

 

END

 

 

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