Dekel Agri-vision Share Discussion Threads

[s_e] 18/1/2016 11:27

DekelOil Public Ltd A Beaufort tip for 2016
DekelOil Public Ltd (LON:DKL) is the operator and 51% owner of the vertically integrated Ayenouan palm oil project in Côte d’Ivoire and on 6th January 2016 provided 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, 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 € 604 € 647 -7%
Kernel production (tonnes) 6,221 2,504 148%
Kernel Sales (tonnes)* 4,806 2,444 97%
Average Kernel price per tonne € 183 € 183 nil
PKO production (tonnes)* 492 Nil –
PKO Sales (tonnes)* 425 Nil –
Average PKO price per tonne € 743 Nil –
PKC production (tonnes)* 712 Nil –
PKC Sales (tonnes)* 417 Nil –
Average PKC price per tonne € 42 Nil –

Kernel Crushing facility commenced operations in November 2015. Kernel sales ceased and PKO and PKC sales commenced.
• 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
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. DekelOil believe the current PKO extraction rate of 37.45% should also improve materially as the newly established kernel crushing operations stabilise in 2016.
A couple of other points worth a comment:
1. DekelOil Public Ltd has been accepted as an approved supplier to the World Bank-backed Projet d’Appui au Secteur de l’Agriculture de Côte d’Ivoire project (‘PSAC’), which aims to support and improve the palm oil industry in Côte d’Ivoire. PSAC is 70% financed by both the World Bank and International Finance Corporation (‘IFC’) and 30% by the local Inter- professional Association of Oil-Palm Industry. See our Breakfast Today note on 19th August 2015
2. Palm Oil facing upward Pressure on Pricing: ‘Palm oil will extend its rally next year as the worst El Nino in almost two decades curbs output in the world’s biggest producers and Indonesia uses more for fuel, according to delegates at a conference in Bali. Futures climbed to the highest in almost three weeks. The most consumed cooking oil found in everything from candy to instant noodles has jumped 26 percent from a six-year low in August after drought and smog hurt plantations in Southeast Asia. At the same time Indonesia is raising the amount of palm blended with diesel to 20 percent from 15 percent. That’s boosted futures as prices of other farm commodities slump.’ Source: Bloomberg
With the recently announced €5.1 million reduction in debt, the Company is on course to realise the highly cash generative potential of the vertically integrated project at Ayenouan. In line with their strategy, this will provide a strong platform from which to deliver on the Company’s objective and build a leading West African focused palm oil company.
Earlier in December 2015 DekelOil announced that it had entered into an agreement with its joint venture partner, Biopalm Energy Ltd, which reduces the Company’s debt position by €5.1m. This will have a major positive impact on the Company’s profitability. Importantly, whilst there is no announcement about dividends, with the debt reduced, obstacles to paying a dividend have been removed.Buy (HS)
Beaufort Securities acts as corporate broker to DekelOil Public Limited

[s_e] 12/1/2016 19:13

Dekeloil director hints at future dividend plans
Share
08:48 12 Jan 2016
DekelOil (LON:DKL) director Lincoln Moore says the company could start paying a dividend later this year, depending on debt refinancing progress and operational cash flow levels.

Last week the firm hailed an ‘excellentR17; first full year of production for its Ayenouan palm oil plant in Côte d'Ivoire.

Output was 35,770 tonnes of crude palm oil, a year on year increase of 151%; sales were up 156%.

www.proactiveinvestors.co.uk/companies/stocktube/4542/dekeloil-director-hints-at-future-dividend-plans-4542.html

[here and there] 06/1/2016 07:51

Fantastic RNS today….150% increase in production

[here and there] 30/12/2015 19:45

They are going up. El Nino is going to knock back production in SE Asia by 5-10%. Last two strong El Ninos prices shot up. This El Nino looks like one of the biggest on record. DKL is in W Africa….not affected by El Nino so it should do great things to the bottom line

[my retirement fund] 30/12/2015 17:12

Anyone any views on palm oil prices in 2016?

[here and there] 30/12/2015 15:29

should see news on production in January, some sort of company update and hopefully that long awaited news re. converting expensive debt to cheaper debt. I expect 1.3p to be breached by the end of January

[here and there] 30/12/2015 15:27

chart looks good, new upward trading range developing

[here and there] 30/12/2015 15:27

cpo prices keep heading up, just the beginning. Wait till Q2 this year the affects of El Nino kick in

[mach100] 21/12/2015 12:37

Good post here and there! Great to see a lot of new investors climb on board today.Investments in Dekeloil are starting to bear fruit and we may well have further pleasing updates about production and debt restructuring to come. Plenty to like and a hot stock for 2016!

[here and there] 21/12/2015 07:36

hxxp://www.mpoc.org.my/Wheat_and_vegoils,_including_palm_oil,_prices_set_to_rebound_in_2016.aspx

'Oil palm trees take about nine months to show stress due to drought, indicating that the impact of the current El Nino on yields in top producers Indonesia and Malaysia will be evident in the second half of 2016, analysts said.'

Drought in Indonesia/Malaysia was July, August, September, October……;.which fits very nicely with when DKL will be reporting record outputs in W.Africa high season. This has to sharpen the focus of the big boys in S.E. Asia. I can see a buyout by the end of the year

[mach100] 20/12/2015 14:57

Good article s-e and hopefully will be the catalyst for a rerating tomorrow. I think we will have some movement early doors but whether some profit takers move in to stall the rise is yet to be seen. The article reads very well and should bring DKL on the radar to smaller investors. Miton is useful for drawing attention to the company and will hopefully be adding to its holdings in 2016.

[s_e] 20/12/2015 09:16

MIDAS SHARE TIPS UPDATE: Ethical palm oil producer's shares edge up as production rises seven-fold
By JOANNE HART FOR THE MAIL ON SUNDAY
PUBLISHED: 21:56, 19 December 2015 | UPDATED: 21:56, 19 December 2015

[mach100] 18/12/2015 16:47

Lots of buying interest at 1.2p so I reckon we could be in for a move up. Seems too hard for the mm's to keep the ask at 1.20p but 1.25p draws out sellers. We should have a production update within 3 weeks so that may be a spur for a movement up and out of this tight trading range.

[here and there] 08/12/2015 10:57

Agreed, also great to get that loan note away which means they will be more able to pay a dividend next year

[mach100] 08/12/2015 10:25

Great news today which should really help embolden the company is renegotiating the coupon on the outstanding debt. Real vote of confidence by Biopalm that the Palm kernel Oil facility will wash its won face very quickly indeed and will be worth more than 500000 euros per year that they have foregone. Excellent news! Great work by the board!

[dibs61] 22/11/2015 22:43

Palm Oil Prices seen at $600 by end Q1 2016 and $700 end Q2 2016.

Looking very bullish indeed here. A perfect storm of rising production growth and rising CPO prices? Not an outlandish prospect.

[juuunx2] 22/11/2015 15:42

Recently in here prospects sound very good indeed

[mach100] 21/11/2015 19:36

Seems to be at least bouncing off its bottom Molatov. The good thing is DKL are not so constrained by falling CPO prices as others as its costs are tied to the price. It is also operating with a very low cost base with a lot of very small stakeholders who can't demand monopoly prices for produce. I hope for a bounce back in the Kernal Palm Oil Price too as it is higher value and remember it will wash its own face within a year for DKL. It was a really strong week and I think the small drop on Friday was all but inevitable. Guitry news or debt restructuring should be RNS'd soon so we have some milestones awaiting us. I am also hoping that as we are coming onto the radar more buyers will emerge in the coming weeks.

[molatovkid] 19/11/2015 13:46

Palm Oil prices on the move too !!

[dibs61] 19/11/2015 13:45

Can't believe its so quiet here with such a bullish outlook.

[dibs61] 18/11/2015 16:06

Yes molatovkid they can sell at a premium locally because local demand exceeds supply compared to global prices. No exporting so no additional transport costs etc

[molatovkid] 18/11/2015 15:36

By selling into local market they are getting better prices I seem to recall.....

[dibs61] 18/11/2015 13:48

My point exactly here and there - all part of my research conclusion. ;)

Market looks like its catching onto the story at last. 16.67% so far today. Plenty more to come as this is re-rated.

[here and there] 18/11/2015 13:13

particularly as el nino does not affect Ivory Coast but causes drought in Indonesia/Malaysia which produces 85% of the world's CPO