TIDMDKL
RNS Number : 9251R
Dekel Agri-Vision PLC
11 July 2022
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
H1 2022 Operating 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 its half year
production update for the period ending 30 June 2022 ('H1 2022') on
the 100%-owned Ayenouan palm oil project in Côte d'Ivoire (the
'Palm Oil Operation') and an update on the ramp-up of production of
our large-scale cashew processing plant at Tiebissou, Côte d'Ivoire
(the 'Cashew Project').
Highlight s
-- Despite unusually low high season volumes, the record high
prices of Crude Palm Oil ('CPO') and Palm Kernel Oil ('PKO') and
strong extraction rates achieved mean H1 2022 financial results of
the Palm Oil Operation have remained strong with increased gross
margin percentage largely offsetting lower volumes
-- 36.3% decrease in CPO production to 16,893 tonnes in H1 2022 compared to 26,515 in H1 2021
-- 24.0% increase in average realised CPO prices to a record
level of EUR1,013 per tonne in H1 2022 (H1 2021: EUR817)
-- 83.6% increase in average realised PKO prices to a record
level of EUR1,454 per tonne in H1 2022 (H1 2021: EUR792)
Lincoln Moore, Dekel 's Executive Director , said: "We remain
optimistic that the strong current international CPO prices will
continue to trade at levels above historical averages of EUR750 per
tonne. In addition, given the high levels of oil palm estates
planted over the past 5-10 years in our region, we expect the
current low levels of fresh fruit bunches ('FFB') volumes are a
temporary agronomic variation. Therefore, together with continued
high prices, the Palm Oil Operation is well-positioned to deliver a
sustained period of operating profitability.
"We are also pleased to confirm that the remaining key shipments
for the Cashew Operation, most notably the outstanding shelling
machines, have taken place. We remain on track to meet market
expectations of cashew production forecasts in 2022 and will
provide a detailed update on the Cashew Operation in due course as
we continue the final assembly process and move towards full
production capacity".
H1 2022 H1 2021 Change
FFB processed (tonnes) 75,448 123,684 -39.0%
CPO production (tonnes) 16,893 26,515 -36.3%
CPO Extraction Rate 22.4% 21.4% 4.7%
CPO Sales (tonnes) 16,996 24,784 -31.4%
Average CPO price
per tonne EUR1,013 EUR817 24.0%
PKO production (tonnes) 1,162 1,554 -25.2%
PKO Sales (tonnes) 1,180 1,223 -3.5%
Average PKO price
per tonne EUR1,454 EUR792 83.6%
PKC production (tonnes) 1,762 2,428 -27.4%
PKC Sales (tonnes) 692 1,707 -59.5%
Average PKC price
per tonne EUR86 EUR77 11.7%
* Numbers subject to half-year interim audit including final
audit cut-offs
Crude Palm Oil
-- Production: 36.3% decrease in CPO production to 16,893 tonnes
in H1 2022 compared to H1 2021
o The typical high season, which normally takes place from
February to May, was at historically low levels
o CPO extraction rate in H1 2022 increased to 22.4% (H1 2021:
21.4%), partially offsetting 39% lower FFB quantities compared to
H1 2021
-- Sales: 31.4% fall in CPO sales to 16,996 tonnes in H1 2022
(H1 2021: 24,784 tonnes) largely due to the lower CPO
production
-- Prices: 24.0% increase in average realised CPO prices to a
record level of EUR1,013 per tonne in H1 2022 compared to H1
2021
o International CPO prices have steadied but continue to trade
at multi-year highs of approximately EUR1,150 - 1,250 per tonne
Palm Kernel Oil ('PKO')
-- Production: H1 2022 PKO production 25.2% lower than H1 2021 due to lower FFB volumes
-- Sales: 3.5% decrease in H1 2022 compared to H1 2021 as a
patient sales approach is adopted to capitalise on rising PKO
prices
-- Prices: 83.6% higher in H1 2022 (EUR1,454) than H1 2021
(EUR792), which is a record half-year average price achieved
-- The high prices reflect the successful strategy to export a
significant amount of PKO production in regional Africa to gain
access to higher international prices
Palm Kernel Cake ('PKC')
-- Similarly to PKO, we are also taking a patient approach to
sales prices to capitalise on rising PKC price levels
-- Dekel currently holds approximately 2,100 tonnes of stock at
the end of H1 2022 which we expect to sell gradually in H2 2022 to
take advantage of rising PKC prices
-- Prices: 11.7% increase in average realised PKC prices to
EUR86 per tonne in H1 2022 compared to EUR77 per tonne in H1
2021
Cashew Project
-- As announced on 13 June 2022, the colour sorter arrived on 12
June and t he remaining shelling machines have now been shipped.
This will enable the Company to significantly expand its production
capacity and we will provide material updates regarding the
assembly milestones over the coming weeks.
Issue of Equity
In addition, application has been made to the London Stock
Exchange for the admission of a total of 306,334 ordinary shares of
EUR0.0003367 each ("Ordinary Shares") issued to certain advisers in
settlement of fees for services provided ("Admission"). It is
expected that Admission will become effective on or around 15 July
2022. Following Admission, the Company's issued share capital will
consist of 537,404,775 Ordinary Shares which may be used by
shareholders as the denominator for the calculations by which to
determine if they are required to notify their interest in, or a
change to their interest in, the Company under the FCA's Disclosure
and Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, 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 +44 (0) 207 236 1177
WH Ireland Ltd (Nomad and Joint Broker)
James Joyce / Ben Good +44 (0) 20 7220 1666
Optiva Securities Limited (Joint Broker)
Christian Dennis / Daniel Ingram +44 (0) 203 137 1903
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 capacity
crude palm oil mill and a cashew processing project in Tiebissou,
which commenced production in early January 2021.
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END
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