D1 Oils - Charts, News and Discussion

I am trying to gather some information about the company from previous posts.

telegraph
The shares are risky, but a long-term bet.


iii
"D1 Oils is a favourite amongst the cognoscenti, even though it raised £11.5m in its AIM flotation in October and has already come back to the market for another £26m. It makes car fuel from jatropha trees which it turns into feedstock and either cracks at its own plant or sells on. From 2007 it expects to produce 800,000 tonnes of biodiesel a year. Actively forging relationships around the globe, it recently announced a joint venture with a Chinese technology firm to develop feedstock supply in Sichuan Province, involving 2m hectares of land."

"In a note published today house broker, Bell Lawrie, forecasts pre-tax profits of £12m in 2007 rising to £186m in 2010, on revenues of £78m rising to £566m. "

"In the EU, legislation is already in place to mitigate this by increasing the proportion of biodiesel in Europe's transport energy mix. The EU biofuels directive requires a minimum level of biofuels as a proportion of fuels sold in the EU of 2% by 2005, 5.75% by 2010 and 20% by 2020. Demand for biodiesel is expected to reach 10.5 billion litres by 2010. With first mover advantage, D1 Oils is ideally placed to take significant market share in a market that is forecast to be worth $2.4bln in the EU alone. Buy."

"The company has 267,000 hectares of land contracted for its initial planting programme, up seven fold from the Admission document in November 2004. Additionally, the company has 9.2mln hectares (increase of 56% since Admission) of land under option for planting. D1 has selected two main geographic locations in India and China for its biodiesel production from Jatropha. It is estimated that 2 hectares creates 1 job. Full government support is evidenced by the Indian government’s $300mln biodiesel funding project and the Chinese government’s drive to prevent rural farmers defecting from the agricultural mid West to the cities of the East coast. It is estimated that half of the Chinese
population will move to the cities over the next 10 years, while 70% of the population is currently employed in the agricultural sector."