January Palm Oil Production Update

RNS Number : 5379O

Dekel Agri-Vision PLC

10 February 2021

 

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

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

January Palm Oil Production Update

Dekel Agri-Vision Plc, the West African focused agriculture company, is pleased to report that the recent trend of double-digit increases in monthly crude palm oil ('CPO') production, sales and prices at its 100%-owned Ayenouan project in Côte d'Ivoire ('Ayenouan' or the 'Project') continued in January 2021. With production up 52% to 3,269 tonnes, sales up 20% to 2,538 tonnes and realised prices up 28% to €796 per tonne compared to January 2020, it has been an excellent start to the new year. 

	Jan 2021	Jan 2020	Change
FFB processed (tonnes)	15,601	10,240	52.36%
CPO production (tonnes)	3,269	2,152	51.90%
CPO sales (tonnes)	2,538	2,113	20.11%
Average CPO price/tonne	€796	€624	27.56%
PKO production (tonnes)	205	157	30.57%
PKO sales (tonnes)	164	305	-46.23%
Average PKO price/tonne	€663	€687	-3.49%
PKC production (tonnes)	292	250	16.80%
PKC sales (tonnes)	150	255	-41.76%
Average PKC price/tonne	€68	€58	17.21%

Crude Palm Oil Production

· 52% increase in crude palm oil ('CPO') production in January 2021 compared to January 2020 driven by:

o  52% increase in fresh fruit bunches ('FFB') delivered compared to January 2020

· Extraction rate of c.21% in line with January 2020 and is expected to pick up as the high season progresses

CPO Sales and Pricing

· 28% increase in CPO prices to €796 per tonne in January 2021 (January 2020: €624)

· International CPO prices remain high and have been trading in a band between $950 - $1,050 per tonne over the past month - approaching 10-year highs

· Current CPO prices are more than 100% higher than the lows seen during the Q2 2020 COVID lockdown period, which the Board believes is due to palm oil's widespread use in everyday essential products and current shortages in global vegetable oil stocks

· CPO sales up 20% to 2,538 tonnes in January 2021 (January 2020: 2,113 tonnes)

o  All 3,268 tonnes of CPO produced in January 2021 have been sold and are awaiting collection

o  Local demand for CPO remains strong

Palm Kernel Oil ('PKO') Production and Sales

· Higher Palm Kernel Oil ('PKO') and Palm Kernel Cake ('PKC') production in January 2020 compared to January 2021, also due to higher FFB volumes

· PKO and PKC production exceeded sales due to deliberate strategy to sell slowly into the local market to maximise prices achieved

· Whilst local prices are gradually improving, the Company continues to assess opportunities to export PKO to obtain access to international prices which are currently trading at a premium to local prices

DekelOil Executive Director Lincoln Moore said: " The reported 52% increase in volumes produced to 3,269 tonnes is an excellent start to the important peak harvest in Cote d'Ivoire, particularly when combined with strong CPO prices.  

"This year's high season, which if it follows the typical February to May/June timeline, is expected to coincide with the commencement of operations at the large scale Tiebissou cashew processing project.  Having two operational projects producing two commodities is expected to scale up and diversify our revenues and, in the process, transform Dekel's financial profile. Together with a strengthened balance sheet following the recent issue of a €5.9million bond and £3.5million fundraise, we see an exciting future ahead.  With this in mind, I look forward to providing further updates on our progress." 

Production Updates

The Company will continue issuing CPO production figures on a monthly basis to provide shareholders with increased 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 / Dan Gee-Summons (Corporate Finance) Simon Johnson (Corporate Broking)	[phone]
Optiva Securities Limited (Joint Broker) Christian Dennis Jeremy King	[phone]
St Brides Partners Ltd (Investor Relations) Frank Buhagiar Cosima Akerman Megan Dennison	[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 production in Q2 2021. 

 

END

 

 

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