TIDMDKL
RNS Number : 1588L
Dekel Agri-Vision PLC
11 January 2021
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Full Year Production Update
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to provide a production update for its
100%-owned vertically integrated Ayenouan palm oil project in Côte
d'Ivoire ('Ayenouan' or the 'Project') for the year ended 31
December 2020. Following a strong year on year Crude Palm Oil
('CPO') production and sales price performance in Q4 2020, the
Company has finished the year with strong momentum and the Board
remains confident that FY 2020 financial results will show a
material improvement on FY2019 and expect these to be in line with
market expectations.
Further details regarding production and sales at the Project
for Q4 and FY 2020 can be found in the table below.
Q4 2020 Q4 2019 Change FY 2020 FY 2019 Change
FFB processed (tonnes) 24,720 19,437 27.18% 154,151 176,019 -12.42%
CPO production (tonnes) 4,840 3,912 23.72% 34,002 37,649 -9.69%
CPO sales (tonnes) 4,824 3,873 24.55% 34,008 37,713 -9.82%
Average CPO price/tonne EUR664 EUR534 24.34% EUR602 EUR491 22.60%
PKO production (tonnes) 379 339 11.80% 2,516 2,773 -9.27%
PKO sales (tonnes) 662 262 152.67% 2,207 2,621 -15.80%
Average PKO price/tonne EUR575 EUR529 8.70% EUR597 EUR551 8.35%
PKC production (tonnes) 524 623 -15.89% 4,045 4,305 -6.04%
PKC sales (tonnes) 438 624 -29.81% 3,892 4,357 -10.67%
Average PKC price/tonne EUR61 EUR58 5.17% EUR60 EUR56 7.14%
These figures remain subject to full year audit and year end
stock adjustments
Crude Palm Oil Production
-- 34,002 tonnes of CPO produced in 2020 (FY 2019: 37,649 tonnes)
-- A 24% increase in Q4 CPO volumes compared to Q4 last year
helped offset lower year on year production in H1, which was caused
by a region-wide drop in FFB harvested during the peak harvest
season
o 17% increase in CPO produced to 1,492 tonnes in December 2020
follows strong improvements in production volumes for the months of
October and November 2020 compared to the equivalent periods in
2019
-- 22.1% extraction rate achieved in FY 2020 (FY 2019: 21.4%)
due to higher oil content of fruit delivered to the mill for
processing
Sales and Pricing
-- 23% increase in CPO prices to EUR602 per tonne in FY2020 (FY
2019: EUR491) offset lower volumes sold - FY 2020: 34,016 tonnes of
CPO sold (FY 2019: 37,713 tonnes)
-- Strong recovery in global CPO prices and sales in Q4 2020 due to
o restocking post-COVID lockdowns by key buying nations,
including China
o low stock levels in major producing countries such as
Malaysia
-- High current pricing bodes well for local pricing during the upcoming 2021 high season
o International CPO prices are currently trading at over
US$1,000 per tonne, a more than 100% increase on the pricing lows
seen during the Q2 2020 COVID lockdown period
o CPO sales prices continued the trend of month on month
increases with December CPO prices of EUR700 per tonne, compared to
EUR664 in November 2020
o CPO prices mechanically lag the international price for 4-6
weeks and, based on the recent improvement in international prices,
there will be a further material increase in January CPO prices as
the high season commences
o Local demand for CPO remains very strong even after taking
into account the high current prices
-- The Board believes palm oil's widespread use in everyday
essential products supports continued higher pricing levels
Palm Kernel Oil ('PKO') Production and Sales
-- 153% increase in PKO sales in Q4 as stock on hand at H1 2020 continued to unwind
-- The Company believes local demand for premium PKO oil
continues to be impacted by COVID-19 and the continued
strengthening in international PKO prices is not yet reflected in
the local PKO prices
-- Whilst local prices are gradually improving, the Company is
assessing opportunities to export PKO to obtain access to
international prices and will update the market in relation to any
material changes to its PKO client base
DekelOil Executive Director Lincoln Moore said: "The last three
months of 2020 saw double-digit increases in CPO production, sales
and prices achieved at Ayenouan and as a result we believe FY 2020
financial results are on course to show a material improvement on
FY 2019. Furthermore, with CPO prices continuing to rise to levels
we have not seen since Ayenouan commenced production in 2014, we
are looking forward to the upcoming high season in Cote d'Ivoire,
which typically runs from around late Jan through to May. Together
with the commencement of our high margin cashew project at
Tiebissou, which remains on track for Q2 2021, we are confident
that the year ahead will see a further material uplift in our
financial performance. We look forward to providing updates on
further progress."
Production Updates
The Company will continue issuing CPO production figures on a
monthly basis to provide shareholders with increased visibility on
operations and trading during the global COVID-19 pandemic.
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
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Arden Partners Plc (Nomad and Joint
Broker)
Paul Shackleton / Ruari McGirr /
Dan Gee-Summons (Corporate Finance)
Simon Johnson (Corporate Broking) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman
Megan Dennison +44 (0) 207 236 1177
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 crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in Q2 2021.
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END
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