Dekeloil Public Limited AGM Statement (9488M)
August 03 2017 - 2:00AM
UK Regulatory
TIDMDKL
RNS Number : 9488M
Dekeloil Public Limited
03 August 2017
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
03 August 2017
DekelOil Public Limited ('DekelOil' or the 'Company')
AGM Statement
DekelOil Public Limited, operator and 100% owner of the
profitable and vertically integrated Ayenouan palm oil project in
Côte d'Ivoire, is holding its Annual General Meeting ('AGM') later
today. At the meeting, Youval Rasin, CEO, will make the following
statement:
"2017 represents DekelOil's fifth year on AIM. We are proud of
our record as a publicly traded company as each year has seen us
achieve major milestones, all of which are key to delivering on our
overall objective to build DekelOil into a leading West African
focused palm oil producer. In 2013 DekelOil was first admitted to
AIM. 2014 saw the commissioning of our 70,000 tn/yr crude palm oil
('CPO') extraction Mill which, as well as being one of West
Africa's largest, is strategically located in an area of Cote
d'Ivoire where we identified a shortfall in capacity to process
fruit grown by local smallholders. In 2015 we reported a near
doubling in CPO produced to 35,770 (2014: 14,242) as well as the
introduction of our first institutions onto our shareholder
register. In 2016, we announced another full year CPO production
record following a 10.4% increase to 39,498 tonnes; while we also
secured 100% ownership of Ayenouan via two value accretive
acquisitions; as well as two debt refinancings on more favourable
terms and the removal of capital notes from our balance sheet post
year end, which resulted in a 25% reduction in full year financing
costs to EUR2.1m from EUR2.8m.
"Already the current year is seeing the momentum behind the
Company being maintained. Thanks to the growing profitability at
our vertically integrated project at Ayenouan we have announced the
adoption of a progressive dividend policy and a maiden final payout
of 0.17 pence per ordinary share for the year ending 31 December
2016, which is due to be paid on 4 September 2017. As detailed in
our recent half yearly production update for our Ayenouan project,
we expect to report a 22.1% increase in product sales, including
CPO, Palm Kernel Oil ('PKO') and Palm Kernel Cake ('PKC'), to
EUR18.8 million (H1 2016: EUR15.4 million) for the half year to 30
June 2017. This was primarily due to stronger CPO pricing resulting
from higher global prices and increased CPO storage capacity at the
Project, which enabled the Company to improve local pricing terms.
As a result of the record first half sales performance, H1 2017
EBITDA is expected to be materially higher than H1 2016's EBITDA of
EUR3.1m.
"2017 has also seen DekelOil become a multi-project palm oil
company following the formal commencement of operations at Guitry,
our second project in Cote d'Ivoire. As with Ayenouan, we are
looking to develop Guitry into a vertically integrated palm oil
operation including nursery, company-owned estates and a mill
producing CPO from fresh fruit bunches grown by both the Company
and local smallholders. In addition, we also announced that we have
entered into discussions to acquire Norpalm Ghana Limited ('NGL'),
a subsidiary of Norpalm AS, a Norwegian company which owns a palm
oil production company in Western Ghana. NGL is a vertically
integrated palm oil owner and operator with approximately 4,000
hectares of mature palm plantations under ownership and a 30 tn/hr
mill which processes fresh fruit bunches from its own-operated
estates as well as those produced by local smallholders. In
addition to the revenues it generates from selling approximately
15,000 tonnes of CPO into the domestic Ghanaian market, NGL also
operates a palm kernel oil press which produces approximately 2,000
tn of PKO.
"There can be no guarantee that these discussions will result in
DekelOil acquiring NGL, but they nevertheless demonstrate how far
we have come in such a short space of time. Having proven both our
business model and management's ability to implement it at our
first project, we are looking to replicate the success we have had
at Ayenouan elsewhere in West Africa. I look forward to providing
further updates on our progress as we look to transform DekelOil
into a leading palm oil producer not just in Cote d'Ivoire, but in
the wider region."
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.
** ENDS **
For further information please visit the Company's website or
contact:
DekelOil Public Limited
Youval Rasin
Shai Kol +44 (0) 207
Lincoln Moore 236 1177
Cantor Fitzgerald Europe
(Nomad and Broker)
Andrew Craig +44 (0) 207
Richard Salmond 894 7000
Beaufort Securities Limited
(Broker)
Zoe Alexander +44 (0) 207
Elliot Hance 382 8300
Optiva Securities Limited
(Broker)
Christian Dennis +44 (0) 203
Jeremy King 137 1903
St Brides Partners Ltd (Investor
Relations)
Frank Buhagiar +44 (0) 207
Megan Dennison 236 1177
Notes:
DekelOil Public Limited is a low cost producer of palm oil in
West Africa, which it is focused on rapidly expanding. To this end,
it has 100% interest in one of the largest oil processing mills
based in Côte d'Ivoire, which has a capacity of 70,000 tons of CPO.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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