Q3 2017 Production & Sales Update

RNS Number : 8796T

Dekeloil Public Limited

18 October 2017

 

DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers

18 October 2017

DekelOil Public Limited ('DekelOil' or the 'Company')

Q3 2017 Production & Sales Update

DekelOil Public Limited, operator and owner of the profitable and vertically integrated Ayenouan palm oil project in Côte d'Ivoire (the 'Project'), is pleased to provide a production and sales update for the quarter ended 30 September 2017.

Q3 2017 production and sales figures for Crude Palm Oil ('CPO'), Palm Kernel Oil ('PKO') and Palm Kernel Cake ('PKC') at the Project, which includes one of West Africa's largest extraction mills, are detailed in the table below:

	Q3 2017	Q3 2016	Increase / Decrease	H1 2017
Product Sales (excluding nursery)	€6.4 m	€6.5 m	-2%	€19.6 m
FFB collected (tonnes)	21,626	27,418	-21%	117,706
CPO production (tonnes)	4,734	5,823	-19%	26,947
CPO Sales (tonnes)	8,952	9,542	-6%	24,570
Average CPO price per tonne	€640	€612	+5%	€707
PKO production (tonnes)	464	522	-11%	1,648
PKO Sales (tonnes)	704	719	-2%	1,322
Average PKO price per tonne	€904	€832	+9%	€1,015
PKC production (tonnes)	662	666	-0.6%	2,204
PKC Sales (tonnes)	668	606	+10.%	2,229
Average PKC price per tonne	€42	€49	-14%	€51

·     Production for the nine months to 30 September 2017 totalled 31,681 tonnes of CPO, 2,112 tonnes of PKO, and 2,866 tonnes of PKC compared to 34,323 tonnes of CPO and 2,520 tonnes of PKO in the comparable nine month period in 2016

o  Lower Q3 production caused by relatively poor harvest in what is typically a low season in Côte d'Ivoire

·     CPO sold at €640, 11% premium to international benchmark prices, enabling total product sales for the nine month period to 30 September 2017 to be in line with the equivalent period last year despite lower year on year Q3 production

o  CPO international benchmark prices averaged €578 during Q3

·     Validates management's ongoing strategy to maximise value from each fruit processed - installation of extra 3,000 tonne storage tank in Q2 provides DekelOil with flexibility over timing of CPO sales and prices achieved

DekelOil Executive Director Lincoln Moore said, "As an agricultural company, fluctuations in harvests from one year to the next are par for the course and were experienced by all Mill operators during Q3.  At the financial level, specifically in terms of the value of total product sales, we have been able to offset much of the lower production caused by the relatively poor harvest season: the installation of a 3,000 tonne storage tank earlier this year allowed us to finesse the timing of sales to achieve higher prices.  We intend to utilise the remainder of the low season to embark on further value-adding initiatives in time for the start of the next peak harvesting period, and I look forward to providing further updates on our progress in due course." 

** ENDS **

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.

For further information please visit the Company's website www.dekeloil.com or contact:

DekelOil Public Limited Youval Rasin Shai Kol Lincoln Moore	[phone]
Cantor Fitzgerald Europe (Nomad and Broker) Andrew Craig Richard Salmond	[phone]
Beaufort Securities Limited (Broker) Zoe Alexander Elliot Hance	[phone]
Optiva Securities Limited (Broker) Christian Dennis Jeremy King	[phone]
St Brides Partners Ltd (Investor Relations) Frank Buhagiar	[phone]

Notes:

DekelOil Public Limited is a low cost producer of palm oil in West Africa, which it is focused on rapidly expanding.  Feedstock for the Mill comes from several co-operatives and thousands of smallholders, however it also has nearly 1,900 hectares of its own plantations.  Furthermore, it has a world-class nursery with a 1 million seedlings a year capacity. 

 

END

 

 

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