Dekeloil Public Limited Q3 2016 Production Update (3994M)

TIDMDKL

RNS Number : 3994M

Dekeloil Public Limited

13 October 2016

DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers

DekelOil Public Limited ('DekelOil' or the 'Company')

Q3 2016 Production & Sales Update

DekelOil Public Limited, operator and 85.75% owner of the profitable and vertically integrated Ayenouan palm oil project in Côte d'Ivoire (the 'Project'), is pleased to provide a production and sales update for the quarter ended 30 September 2016.

Q3 2016 production and sales figures for Crude Palm Oil ('CPO'), Palm Kernel Oil ('PKO') and Palm Kernel Cake ('PKC') at the Project, which includes one of West Africa's largest extraction mills, are detailed in the table below:

 
                           Q3 2016   Q3 2015      Increase   H1 2016 
                                                / Decrease 
                            EUR6.7    EUR6.1                 EUR16.0 
 Product Sales                   m         m          9.8%         m 
 FFB collected (tonnes)     27,418    31,873        -13.7%   123,157 
 CPO production 
  (tonnes)                   5,823     7,301        -20.2%    28,550 
 CPO Sales (tonnes)          9,542     9,814         -2.8%    25,225 
 Average CPO price 
  per tonne                 EUR612    EUR610          0.3%    EUR542 
 PKO production 
  (tonnes)                     522       Nil           n/a     1,998 
 PKO Sales (tonnes)            719       Nil           n/a     1,828 
 Average PKO price 
  per tonne                 EUR832       Nil           n/a    EUR781 
 PKC production 
  (tonnes)                     666       Nil           n/a     2,360 
 PKC Sales (tonnes)            606       Nil           n/a     2,615 
 Average PKC price 
  per tonne                  EUR49       Nil           n/a     EUR40 
 

-- Production for the nine months to 30 September 2016 totals 34,323 tonnes of CPO and 2,520 tonnes of PKO compared to 29,137 tonnes of CPO in the comparable nine month period in 2015

-- The earlier start and finish of this year's peak harvesting season and unseasonally drier weather during the low production season has resulted in lower Q3 2016 CPO production and extraction rate compared to Q3 2015

-- On track to reach full year 2016 production targets - October 2016 has to date seen a pick-up in volumes of fresh fruit bunches collected for processing

-- 13% increase in CPO sales prices in Q3 2016 compared to H1 2016 - stock carried through Q2 period sold into higher Q3 pricing

-- CPO prices have ramped up considerably in October 2016 with sales prices now 26% higher than H1 2016 at EUR680 per tonne

-- Production and sales at the Company's Kernel Crushing plant continue to exceed management's expectations with the Palm Kernal Oil extraction rate up to 42.2% for the quarter (H1 2016 41%) and the average sales prices up to EUR832 (H1 2016 EUR781)

DekelOil Executive Director Lincoln Moore said, "With 34,323 tonnes of CPO produced so far this year, we remain on course to report another record full year performance in terms of CPO production. The drier than normal weather conditions in 2016, not just in West Africa but also in Asia, is a double edged sword with significantly higher CPO prices now being achieved compared to H1 2016 being offset by lower Q3 CPO production. We look forward to the normalisation of weather patterns and FFB harvest volumes, as we have seen in October already, as we focus on increasing production while at the same time taking full advantage of a period of relatively higher CPO prices than those we have experienced over the last 12 months."

** ENDS **

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.

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                         +44 (0) 207 
  Richard Salmond                         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 an 86% 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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October 13, 2016 02:00 ET (06:00 GMT)