Dekel Agri-Vision PLC April Palm Oil Production Update (9991X)

TIDMDKL

RNS Number : 9991X

Dekel Agri-Vision PLC

10 May 2021

Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers

Dekel Agri-Vision Plc ('Dekel' or the 'Company')

April Palm Oil Production Update

Dekel Agri-Vision Plc (AIM: DKL) , the West African agriculture company focused on building a portfolio of sustainable and diversified projects, is pleased to provide an April and cumulative year to date production update for its 100%-owned Ayenouan palm oil project in Côte d'Ivoire ('Ayenouan' or the 'Project').

Highlight s

   --      5,147 tonnes of crude palm oil ('CPO') produced in April 2021 

o Brings cumulative CPO production for year to date to 20,474 tonnes, a 12.3% increase on production during the equivalent four-month period in 2020

   --      4,971 tonnes of CPO sold in April 2021 

o Brings cumulative CPO sales for year to date to 18,892 tonnes, a 17.0% increase on sales during the equivalent four-month period in 2020

-- 39.2% increase in average realised CPO prices to EUR803 per tonne in April compared to April 2021

o Brings average realised CPO prices for year to date to EUR794 per tonne, 24.6% higher than the EUR637 per tonne achieved over the equivalent four-month period in 2020

-- Combination of double-digit year to date increases in CPO production, sales and prices puts Dekel on course to post a material uplift in its H1 2021 financial results compared to H1 2020

Lincoln Moore, Dekel 's Executive Director , said: "Thanks to year-to-date CPO production, sales and prices up 12.3%, 17.0% and 24.6% respectively compared to the equivalent period in 2020, we are confident that Ayenouan is on course to post a material improvement in its first half financial performance, surpassing H1 2020's EUR15.4m revenues, EUR1.9m EBITDA and EUR0.4m net profits. Together with the progress made at our large-scale cashew processing project at Tiebissou, the construction of which is nearing completion, and the recent long term debt refinancing, 2021 is shaping up to be the transformative year we hoped it would be."

 
                            Apr-21   Apr-20   Change   YTD2021   YTD2020   Change 
 
 FFB processed (tonnes)     24,010   26,556     -9.6%   95,510    82,451    15.8% 
 CPO production (tonnes)     5,147    6,143    -16.2%   20,474    18,224    12.3% 
 CPO Sales (tonnes)          4,971    5,106     -2.6%   18,892    16,153    17.0% 
 Average CPO price 
  per tonne                 EUR803   EUR577     39.2%   EUR794    EUR637    24.6% 
 PKO production (tonnes)       322      398    -19.1%    1,126     1,169    -3.7% 
 PKO Sales (tonnes)            216      219     -1.4%    1,183       743    59.2% 
 Average PKO price 
  per tonne                 EUR838   EUR610     37.4%   EUR791    EUR648    22.1% 
 PKC production (tonnes)       529      558     -5.2%    1,716     1,727   -0.60% 
 PKC Sales (tonnes)            349      691    -49.5%    1,327     1,518   -12.6% 
 Average PKC price 
  per tonne                  EUR80    EUR59     35.6%    EUR75     EUR61    23.0% 
 
 

Crude Palm Oil

   --      Production: 5,147 tonnes of CPO produced in April 2021 (April 2020: 6,143 tonnes) 

o Brings total CPO produced year to date to 20,474 tonnes, 12.3% higher than 2020 (18,224 tonnes)

o April production below last year's volumes due to lower deliveries of fresh fruit bunches ('FFB'), lower oil content of the fruit, and exceptional comparatives in April 2020

o April CPO extraction rate of 21.4% lower than Q1 2021's 23.1% due to reduced FFB oil content

   --      Sales: 4,971 tonnes sold in April 2021 in line with April 2020 (5,106 tonnes) 

o Brings total CPO sold year to date to 18,892 tonnes, 17.0% higher than 16,153 tonnes sold in equivalent period in 2020

-- Prices: 39.2% increase in average realised CPO prices to EUR803 per tonne (April 2020: EUR577)

o Brings year to date average realised prices to EUR794, a 24.6% increase on equivalent period in 2020

o International CPO prices trading near 10-year highs in a band between EUR900-1,000 per tonne continue to generate strong margins at Ayenouan

Palm Kernel Oil ('PKO')

   --      Production: 322 tonnes of PKO produced in April 2021 compared to 398 tonnes in April 2020 

o Lower year on year production follows exceptionally strong April 2020 FFB deliveries to the mill

   --      Sales: 216 tonnes sold in April 2021 in line with 219 tonnes sold in April 2020 

o Lower April 2021 sales compared to April 2021 production due to Dekel strategy of holding back stock to capitalise on rising local PKO price levels

   --      Prices: 37.4% increase in PKO prices to EUR838 per tonne compared to EUR610 in April 2020 

o Local PKO prices continue to catch up with international benchmarks

Palm Kernel Cake ('PKC')

   --      Production: 529 tonnes of PKC produced in April 2021 compared to 558 tonnes in April 2020 

o 5.2% year on year reduction in production due to lower FFB volumes

   --      Sales: 349 tonnes sold in April 2021 compared to 691 tonnes in April 2020 

o Lower April 2021 sales compared to April 2020 production due to Dekel strategy of holding back stock to capitalise on rising local PKC price levels

-- Prices: 35.6% increase in average realised PKC prices to EUR80 per tonne compared to EUR59 per tonne in April 2020

o Local PKC prices continue to catch up with international benchmarks

Production Updates

The Company will continue issuing CPO production figures on a monthly basis to provide shareholders with visibility on operations and trading during the global COVID-19 pandemic.

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.

** ENDS **

For further information please visit the Company's website www.dekelagrivision.com or contact:

 
 Dekel Agri-Vision Plc 
  Youval Rasin 
  Shai Kol 
  Lincoln Moore                                 [phone] 
 Arden Partners Plc (Nomad and Joint 
  Broker) 
  Paul Shackleton / Ruari McGirr / 
  Dan Gee-Summons (Corporate Finance) 
  Simon Johnson (Corporate Broking)             [phone] 
 Optiva Securities Limited (Joint Broker) 
  Christian Dennis 
  Jeremy King                                   [phone] 
 St Brides Partners Ltd (Investor Relations) 
  Frank Buhagiar 
  Cosima Akerman 
  Megan Dennison                                [phone] 
 

Notes:

Dekel Agri-Vision Plc is a multi-project, multi-commodity agriculture company focused on West Africa. It has a portfolio of projects in Côte d'Ivoire at various stages of development: a fully operational palm oil project in Ayenouan where fruit produced by local smallholders is processed at the Company's 60,000tpa crude palm oil mill; a cashew processing project in Tiebissou, which is due to commence production in June 2021.

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May 10, 2021 02:00 ET (06:00 GMT)