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

Dekel Agri-VisionAnnouncement

12/06/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230612:nRSL3010Ca&default-theme=true

RNS Number : 3010C  Dekel Agri-Vision PLC  12 June 2023

 

12 June 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')

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

 

Key Highlights

·      The Palm Oil Operation delivered a third consecutive month of
very strong performance with Fresh Fruit Bunch ('FFB') volumes and Crude Palm
Oil ('CPO') production increasing a substantial 163.9% and 144.9% respectively
compared to May 2022.

·      The CPO production result was a record for the month of May and a
continuation of the later than usual high season which will now certainly see
the Palm Oil Operation deliver a materially higher half year production
performance in 2023 compared to 2022.

·      CPO sales quantities increased 17.8% in May compared to last year
and Palm Kernel Oil ('PKO') production increased 93.9% compared to May last
year.  The recent spike in production has seen inventory levels of CPO and
PKO at levels materially higher than last year which should drive strong sales
quantities over the coming months.

·      CPO sales price achieved remained strong at €953 per tonne, a
slight decrease from last month reflecting the recent softening of
international CPO prices which are now trading around €800-850 per
tonne.   A local CPO price premium continues to be achieved, however, we
expect some further softening of local prices in the next 1-2 months, albeit
prices achieved still remain well above historical averages.

·      The CPO extraction rate improved slightly from the previous month
to 21.8% from 21.4% and we are seeing further improvement in June 2023.
Although seasonal peak production is now tapering off, our early guidance for
June 2023 CPO production remains significantly higher than June 2022.

·      Similar to last month, the financial performance for May 2023 was
strong and has positioned the Palm Operation to deliver an excellent H1 2023
period of financial performance.

 

                                              May-23  May-22    Change

 FFB processed (tonnes)                       24,301  9,207     163.9%
 CPO Extraction Rate                          21.8%   23.5%     -7.8%
 CPO production (tonnes)                      5,306   2.167     144.9%
 CPO Sales (tonnes)                           4,741   4,025     17.8%
 Average CPO price per tonne                  €953    €1,056    -9.8%
 Palm Kernel Oil ('PKO') production (tonnes)  320     165       93.9%
 PKO Sales (tonnes)                           Nil     148       n/a
 Average PKO price per tonne                  n/a     €1,606    n/a

 

Lincoln Moore, Dekel's Executive Director, said: "May 2023 was a really
pleasing month for the Palm Oil Operation headlined by a 144.9% increase in
CPO production compared to May last year which was also a record level of
production for the month of May.  Whilst CPO prices have softened from near
record levels, the current prices remain historically strong and we continue
to achieve a local premium to international prices. Overall, the Palm Oil
Operation remains well positioned to deliver an excellent H1 2023 outcome."

 

 

** 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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEALKNESEDEFA