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

Dekel Agri-VisionAnnouncement

11/04/2023 07:00

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RNS Number : 7165V  Dekel Agri-Vision PLC  11 April 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.

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

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

 

Key Highlights

·      March monthly like for like production increased significantly
compared to last year with Fresh Fruit Bunch ('FFB') volumes and Crude Palm
Oil ('CPO') production increasing 56.4% and 48.6% respectively.

o  The increase in production was driven by the return of a more typical high
season harvesting month as compared to last year.

o  The increase in production has continued into early April and our early
guidance for April is we expect to report higher production in April compared
to last year.

·      The Company is continuing to see strong local Crude Palm Oil
('CPO') demand resulting in CPO sales quantities increasing 45.2% in March
compared to last year.  Palm Kernel Oil ('PKO') sales quantities were also
strong in March increasing 206% compared to last year driven largely by the
timing of bulk PKO sales taking place in March and a 19.4% increase in
production.

·      CPO sales prices remain robust at €967 per tonne.  Local
prices continued to trade at a premium to the international CPO prices which
hovered around $1,025 per tonne (€940 per tonne) during March. Palm Kernel
Oil ('PKO') prices have decreased from their all time peak levels last year
and the international price is currently trading at around €1,000 per
tonne.  Local PKO demand remains slightly softer with prices achieved of
€973 per tonne.

·      The CPO extraction rate decreased from the record February
levels, however, was in line with historical trends at 21.8% where the
delivery of peak FFB volumes inevitably leads to increased double handling of
FFB at the mill site awaiting processing.

·      The Palm Oil Operation gross margin percentages remain healthy
and the significant increase in FFB volumes has materially improved overall
gross margins in March 2023 compared to March 2022.

 

                                              Mar-23  Mar-22    Change

 FFB processed (tonnes)                       24,508  15,673    56.4%
 CPO Extraction Rate                          21.6%   22.8%     -5.3%
 CPO production (tonnes)                      5,302   3,567     48.6%
 CPO Sales (tonnes)                           4,048   2,788     45.2%
 Average CPO price per tonne                  €967    €996      -2.9%
 Palm Kernel Oil ('PKO') production (tonnes)  280     235       19.4%
 PKO Sales (tonnes)                           383     125       206.4%
 Average PKO price per tonne                  €973    €1,486    -34.5%

 

Lincoln Moore, Dekel's Executive Director, said: "It has been fantastic to see
the return of a more typical peak harvesting month following last year's flat
FFB high season harvest. With CPO prices remaining strong, we are currently
capitalising on this period of strong production. FFB quantities in early
April have continued to look promising setting the Palm Oil Operation up for a
potentially strong Q2 2023 performance compared to last year.    We also
look forward to providing our first quarterly production report for the Cashew
Operation which will be released in the coming days."

 

** 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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