TIDMDKL
RNS Number : 1357U
Dekeloil Public Limited
05 April 2016
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
5 April 2016
DekelOil Public Limited ('DekelOil' or the 'Company')
Q1 2016 Production Update
DekelOil Public Limited, operator and 51% owner of the
vertically integrated Ayenouan palm oil project in Côte d'Ivoire,
is pleased to announce that crude palm oil ('CPO') production for
the quarter ended 31 March 2016 has materially exceeded
management's expectations and has increased significantly in
comparison to the corresponding period in 2015.
CPO production is delivered via the Company's 60 t/hr CPO
extraction mill ('the Mill'), which is one of West Africa's
largest, and production of Palm Kernel Oil ('PKO') and Palm Kernel
Cake ('PKC') is delivered via its 60 t/ day Kernel Crushing Plant
('KCP') which was commissioned in November 2015, providing DekelOil
with an additional revenue stream.
CPO Production:
-- 15,141 tonnes of CPO produced in Q1 2016:
o 56.4% like-for-like increase in CPO production compared to Q1
2015
-- Production increased month on month during Q1 2016 with
production records set in February and March 2016
o January 2016 - 3,073 tonnes of CPO produced (January 2015:
2,168 tonnes)
o February 2016 - 5,733 tonnes of CPO produced (February 2015:
3,158 tonnes)
o March 2016 - 6,335 tonnes of CPO produced (March 2015: 4,352
tonnes)
-- 65,610 tonnes of fresh fruit bunches ('FFBs') delivered to
the Mill in Q1 2016 compared to 40,448 tonnes in Q1 2015 -
demonstrates DekelOil's strengthened regional position and
heightened relationships with the local farming community, as well
as the effectiveness of the Company's logistics network
-- CPO extracted at a rate of 23.1% during the period
-- 12,082 tonnes of CPO were sold during the period at an
average price of EUR532 per tonne. CPO prices have increased
considerably during the quarter with early sales in April taking
place at a price approximately 10% higher than the average for Q1
2016
-- Gross margins, particularly in February and March have
increased considerably compared to 2015
PKO and PKC Production:
-- Successfully produced 983 tonnes of PKO and 1,355 tonnes of
PKC during the KCP's first full quarter of operations
-- PKO extraction rate of 39.9%, representing an uplift from the
previous period as production ramps up
-- 851 tonnes of PKO sold at an average price per tonne of
EUR753 and 1,014 tonnes of PKC sold at an average price per tonne
of EUR43
DekelOil Executive Director Lincoln Moore said, "The delivery of
15,141 tonnes of CPO during the quarter represents a record for
DekelOil and materially exceeds both internal and external
expectations. We are delighted that we have increased CPO
production by 56% compared to the equivalent period in 2015, and we
remain firmly on track to deliver another year of significant
production growth at the Mill in 2016. By accommodating the
requirements of local smallholders and by making our Mill easy to
access via the development of logistics hubs, we have ensured that
DekelOil's regional reputation is that of a highly professional and
reliable operator, and this is paying dividends as more farmers
bring their FFB to us, establishing the Company as a credible
player in the market place.
"Our revenues and margins are also being impacted positively
this quarter thanks to the increase in production together with the
successful ramp up of operations at the KCP which allows us to sell
PKO and PKC, both of which are value add products. Having recently
re-financed our debt on more attractive terms, and with production
going from strength to strength, DekelOil has never been in a
better position, both operationally and financially.
"We believe there remain significant opportunities for growth in
2016 and beyond from the continued increase in our production,
together with a continual improvement of our processes and
efficiencies for dealing with the substantial increase in FFB
volumes, particularly in an environment with rising prices for CPO.
We are very excited with the further step up our operations have
made in Q1 2016 and I look forward to providing further updates on
our progress."
In addition, application has been made to AIM for the admission
of 560,538 ordinary shares of EUR0.00003367 each ('Ordinary
Shares') issued to certain advisers in settlement of fees for
services provided ('Admission'). It is expected that Admission will
become effective on Monday 11 April 2016. Following Admission, the
Company's issued share capital will consist of 1,543,826,860
Ordinary Shares.
** ENDS **
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
Chris Viggor 894 7000
Beaufort Securities Limited
(Broker)
Saif Janjua +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 27,000 hectares of mature palm
oil plantations that have been secured under long term contracts
with 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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April 05, 2016 02:00 ET (06:00 GMT)