Dekeloil Public Limited Q3 2017 Production & Sales Update (8796T)

TIDMDKL

RNS Number : 8796T

Dekeloil Public Limited

18 October 2017

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

18 October 2017

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

Q3 2017 Production & Sales Update

DekelOil Public Limited, operator and 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 2017.

Q3 2017 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 2017   Q3 2016      Increase    H1 2017 
                                                  / Decrease 
 Product Sales (excluding     EUR6.4    EUR6.5                  EUR19.6 
  nursery)                         m         m           -2%          m 
 FFB collected (tonnes)       21,626    27,418          -21%    117,706 
 CPO production (tonnes)       4,734     5,823          -19%     26,947 
 CPO Sales (tonnes)            8,952     9,542           -6%     24,570 
 Average CPO price 
  per tonne                   EUR640    EUR612           +5%     EUR707 
 PKO production (tonnes)         464       522          -11%      1,648 
 PKO Sales (tonnes)              704       719           -2%      1,322 
 Average PKO price 
  per tonne                   EUR904    EUR832           +9%   EUR1,015 
 PKC production (tonnes)         662       666         -0.6%      2,204 
 PKC Sales (tonnes)              668       606         +10.%      2,229 
 Average PKC price 
  per tonne                    EUR42     EUR49          -14%      EUR51 
 

-- Production for the nine months to 30 September 2017 totalled 31,681 tonnes of CPO, 2,112 tonnes of PKO, and 2,866 tonnes of PKC compared to 34,323 tonnes of CPO and 2,520 tonnes of PKO in the comparable nine month period in 2016

o Lower Q3 production caused by relatively poor harvest in what is typically a low season in Côte d'Ivoire

-- CPO sold at EUR640, 11% premium to international benchmark prices, enabling total product sales for the nine month period to 30 September 2017 to be in line with the equivalent period last year despite lower year on year Q3 production

o CPO international benchmark prices averaged EUR578 during Q3

-- Validates management's ongoing strategy to maximise value from each fruit processed - installation of extra 3,000 tonne storage tank in Q2 provides DekelOil with flexibility over timing of CPO sales and prices achieved

DekelOil Executive Director Lincoln Moore said, "As an agricultural company, fluctuations in harvests from one year to the next are par for the course and were experienced by all Mill operators during Q3. At the financial level, specifically in terms of the value of total product sales, we have been able to offset much of the lower production caused by the relatively poor harvest season: the installation of a 3,000 tonne storage tank earlier this year allowed us to finesse the timing of sales to achieve higher prices. We intend to utilise the remainder of the low season to embark on further value-adding initiatives in time for the start of the next peak harvesting period, and I look forward to providing further updates on our progress in due course."

** 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)                           +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. 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 18, 2017 02:00 ET (06:00 GMT)