TIDMDKL
RNS Number : 9427B
Dekeloil Public Limited
16 January 2018
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
16 January 2018
DekelOil Public Limited ('DekelOil' or the 'Company')
Full Year Production Update
DekelOil Public Limited, operator and 100% owner of the
vertically integrated Ayenouan palm oil project in Côte d'Ivoire
(the 'Project'), is pleased to provide a production update for the
year ended 31 December 2017.
The Company is pleased to announce that DekelOil achieved record
CPO volumes for a Q4 period which, at 7,055 tonnes, were 48.9%
higher than Q4 2016.
Q4 2017 Q4 Change FY 2017 FY 2016 Change
2016
FFB collected
(tonnes) 32,364 20,726 +56.2% 171,696 171,301 +0.2%
CPO production
(tonnes) 7,055 4,738 +48.9% 38,736 39,111 -1.0%
CPO Sales (tonnes) 6,586 4,731 +39.2% 38,373 39,498 -2.8%
PKO production
(tonnes) 442 331 +33.5% 2,554 2,851 -10.4%
PKO Sales (tonnes) 544 348 +56.3% 2,570 2,895 -11.2%
PKC production
(tonnes) 578 442 +30.8% 3,444 3,468 -0.7%
PKC Sales (tonnes) 433 511 -15.3% 3,330 3,732 -10.8%
These figures remain subject to full year audit
-- 38,736 tonnes of CPO produced in 2017 (FY 2016: 39,111
tonnes) - flat full year-on-year CPO production follows:
o record Q4 2017 production of 7,055 tonnes (Q4 2016: 4,738
tonnes) primarily due to stronger local agriculture conditions
o the strong finish to the year almost entirely offset reduced
production due to unscheduled downtime during May and June 2017
when the Company's Mill was not fully operational due to two
separate mechanical issues that have since been rectified
-- The Company expects to report a record full year financial
performance largely driven by an 18.3% increase in average selling
year-on-year CPO prices to EUR680 (2016: EUR575). Average selling
prices were also materially higher for PKO EUR980 (2016: EUR808)
and PKC EUR48 (2016: EUR43)
o 2017 revenues, EBITDA and NPAT expected to exceed 2016's full
year reported figures of EUR26.6 million, EUR4.1 million, and
EUR1.3 million respectively
-- 22.6% extraction rate achieved in 2017 (2016: 22.9%) - whilst
this is still relatively strong compared to DekelOil's competitors,
in-house laboratory analysis shows actual oil content in fruit
processed in 2017 was lower than previous years. In addition to
agricultural variations, the Company believes this may be due to
processing slightly younger fruit following heavy planting in the
region over the last 5-7 years
o the Board expects the extraction rate to gradually rise again
over time as plants mature and produced fruit contains a higher oil
content
DekelOil Executive Director Lincoln Moore said, "Thanks to a
record Q4 performance, our 2017 CPO production, at 38,736 tonnes,
closely matches last year's total, a highly creditable outcome
particularly when the unplanned stoppages at the Mill during May
and June are taken into account. The combination of stable
production and higher CPO pricing will translate into record full
year revenues and profits.
"Prior to 2017, CPO production at Ayenouan had grown for three
consecutive years. We expect 2018 will see a resumption in annual
CPO production growth. Our confidence is based not only on
DekelOil's growing standing among local smallholders as an
established and reliable buyer of fruit, but also the imminent
completion of the 25% increase in the Mill's capacity to 75 tonnes
per hour from 60 tonnes per hour. Importantly, this will be in
place in time for the commencement of the peak harvest season,
which typically runs from February until June in Côte
d'Ivoire."
In addition, application has been made to the London Stock
Exchange for the admission of a total of 628,397 ordinary shares of
EUR0.0003367 each ("Ordinary Shares") issued to certain advisers in
settlement of fees for services provided ("Admission"). This figure
includes 400,000 Ordinary Shares which will be issued to Vince
McAleer, CEO of the Company's subsidiary Dekeloil Côte d'Ivoire SA,
as part of his base salary remuneration. It is expected that
Admission will become effective on 22 January 2018. Following
Admission, the Company's issued share capital will consist of
299,010,097 Ordinary Shares.
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) +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. 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 one
million seedlings per year capacity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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