Dekeloil Public Limited 150% Increase in Full Year Palm Oil Production (9323K)
06 January 2016 - 6:00PM
UK Regulatory
TIDMDKL
RNS Number : 9323K
Dekeloil Public Limited
06 January 2016
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
6 January 2016
DekelOil Public Limited ('DekelOil' or the 'Company')
Full Year Production Update
DekelOil Public Limited, operator and 51% 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 2015. Crude palm oil ('CPO') production
increased by 151% to 35,770 tonnes at the Company's 60 t/hr CPO
extraction Mill ('the Mill'), one of West Africa's largest.
DekelOil also commenced first production and sales of Palm Kernel
Oil ('PKO') and Palm Kernel Cake ('PKC') at the recently
commissioned kernel crushing plant (the 'KCP').
FY 2015 FY 2014 % Increase
--------------------- -------- -------- -----------
CPO production
(tonnes) 35,770 14,242 151%
--------------------- -------- -------- -----------
CPO Sales (tonnes) 35,573 13,900 156%
--------------------- -------- -------- -----------
Average CPO price
per tonne EUR604 EUR647 -7%
--------------------- -------- -------- -----------
Kernel production
(tonnes) 6,221 2,504 148%
--------------------- -------- -------- -----------
Kernel Sales
(tonnes)* 4,806 2,444 97%
--------------------- -------- -------- -----------
Average Kernel
price per tonne EUR183 EUR183 nil
--------------------- -------- -------- -----------
PKO production 492 Nil -
(tonnes)*
--------------------- -------- -------- -----------
PKO Sales (tonnes)* 425 Nil -
--------------------- -------- -------- -----------
Average PKO price EUR743 Nil -
per tonne
--------------------- -------- -------- -----------
PKC production 712 Nil -
(tonnes)*
--------------------- -------- -------- -----------
PKC Sales (tonnes)* 417 Nil -
--------------------- -------- -------- -----------
Average PKC price EUR42 Nil -
per tonne
--------------------- -------- -------- -----------
* Kernel Crushing facility commenced operations in November
2015. Kernel sales ceased and PKO and PKC sales commenced
-- FY 2015 CPO extracted at a rate of 23.6% during the period
from 151,702 tonnes of fresh fruit bunches ('FFB') - compares
favourably to other CPO extraction mills
-- 6,632 tonnes of CPO produced during Q4 2015 - 127% increase compared to Q4 2014
-- Strong local and regional demand has enabled DekelOil to sell
its CPO at a premium to CIF Rotterdam prices. The Company expects
this trend to continue and notes that international crude palm oil
prices are beginning to improve as very low rainfall caused by a
very significant El Nino impact in South East Asia during H2 2015
is resulting in lower production levels which are expected to
continue into H1 2016.
-- KCP now fully commissioned with PKC and now PKO being produced and sold locally
DekelOil Executive Director Lincoln Moore said, "35,770 tonnes
of CPO during what was the Mill's first full year of operations is
an excellent outcome. In our view this reflects the strong
relationships DekelOil has established with local smallholders and
also the effectiveness of the logistics network we have put in
place in the surrounding area to facilitate the delivery of FFB to
the Mill for processing.
"In 2016 we will build on the success we have seen to date with
CPO production expected to continue to grow, in addition to a ramp
up in the production of PKO and PKC at the KCP and a higher
proportion of FFB derived from our 1,900 hectares of mature
company-owned estates. We are pleased with the on-going performance
of the Mill and the extraction rate being achieved and believe the
current PKO extraction rate of 37.45% should also improve
materially as the newly established kernel crushing operations
stabilise in 2016.
"Together with the recently announced EUR5.1 million reduction
in debt, we are on course to realise the highly cash generative
potential of our vertically integrated project at Ayenouan. In line
with our strategy, this will provide a strong platform from which
to deliver on our objective and build a leading West African
focused palm oil company."
** ENDS **
In addition, application has been made to AIM for the Admission
of 1,946,371 new ordinary shares issued to certain advisers in
settlement of fees for services provided. It is expected that
Admission will become effective on 13 January 2016. Following
Admission, the Company's issued share capital will consist of
1,543,266,322 Ordinary Shares.
For further information please visit the Company's website
www.dekeloil.com or contact:
DekelOil Public Limited
Youval Rasin
Shai Kol +44 (0) 207
Lincoln Moore 236 1177
Cantor Fitzgerald Europe
(Nomad and Broker)
Andrew Craig
Richard Salmond +44 (0) 207
Chris Viggor 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)
Elisabeth Cowell +44 (0) 207
Frank Buhagiar 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 a 51% 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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January 06, 2016 02:00 ET (07:00 GMT)