REG - Dekel Agri-Vision - July Palm Oil Production Update

Dekel Agri-VisionAnnouncement

10/08/2023 07:00

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RNS Number : 8364I  Dekel Agri-Vision PLC  10 August 2023

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

10 August 2023

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

July 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 a July production update for its Ayenouan palm oil project in Côte
d'Ivoire ('Palm Oil Operation').

 

Key Highlights

·      The Palm Oil Operation has continued to deliver excellent
production results with Fresh Fruit Bunch ('FFB') volumes and Crude Palm Oil
('CPO') production increasing 161.3% and 140.2% respectively compared to July
2022.  We have now entered the low season and expect the typical softening of
production results to take place over the next 1-2 months.

·      CPO sales quantities increased a substantial 350.9% in July
compared to last year and Palm Kernel Oil ('PKO') production increased 127.5%
compared to July last year.  The exceptional sales quantities for CPO in
particular, reflect the unwinding of higher than normal inventory numbers at
the end of H1 2023 resulting from the strong late peak to the recent
production high season.

·      CPO sales price achieved remained historically strong at €814
per tonne, a slight increase from €797 per tonne last month but at the lower
end of international CPO prices which traded around €850-875 per tonne in
July.  This differential reflects the relatively high local CPO supply levels
created by the strong late peak to the high season.  We expect local CPO
prices will shortly increase again in comparison to the international prices
as local CPO supply levels decrease during the low season.

·      The CPO extraction rate dipped during July to 19.3% compared to
21% in July 2022.  Whilst lower extractions are normal during the low season
the excess dip was attributed by farmers to unusually high rainfall over the
past month impacting FFB ripening and harvesting.  Over the past 10 days we
have seen extraction rates normalise back to around 20% which is more typical
during the low season.

·      The financial results for July 2023 were exceptional compared to
July 2022, largely driven by the 350.9% increase in CPO sales volumes.

 

                                              July-23  July-22   Change

 FFB processed (tonnes)                       11,558   4,423     161.3%
 CPO Extraction Rate                          19.3%    21.0%     -8.5%
 CPO production (tonnes)                      2,231    929       140.2%
 CPO Sales (tonnes)                           5,623    1,247     350.9%
 Average CPO price per tonne                  €814     €973      -16.3%
 Palm Kernel Oil ('PKO') production (tonnes)  207      91        127.5%
 PKO Sales (tonnes)                           542      344       57.6%
 Average PKO price per tonne                  €749     €1,431    -47.7%

 

Lincoln Moore, Dekel's Executive Director, said: "The Palm Oil Operation
continues to perform very well with production and sales volumes significantly
ahead of 2022.  With prices continuing to be historically strong, albeit
lower than the super peak 2022 prices, we remain on track to deliver excellent
financial outcomes from the Palm Oil Operation in 2023."

 

 

** ENDS **

 

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

 

 Dekel Agri-Vision Plc                     +44 (0) 207 236 1177

 Youval Rasin

 Shai Kol

 Lincoln Moore

 WH Ireland Ltd (Nomad and Joint Broker)   +44 (0) 20 7220 1666

 James Joyce

 Darshan Patel

 Optiva Securities Limited (Joint Broker)  +44 (0) 203 137 1903

 Christian Dennis

 Daniel Ingram

 

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 capacity crude palm oil mill and a cashew processing
project in Tiebissou, which is currently transitioning to full commercial
production in 2023.

 

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