Dekeloil Public Limited 150% Increase in Full Year Palm Oil Production (9323K)

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

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January 06, 2016 02:00 ET (07:00 GMT)