08:00 Thu 19 Jul 2018
Dekeloil PLC - Half Year Production Update
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
Half Year Production Update
|
H1 2018 |
H1 2017 |
Increase |
|
|
|
/ Decrease |
Fresh Fruit Bunches ('FFB') collected (tonnes) |
96,195 |
117,706 |
-18.3% |
CPO production (tonnes) |
22,242 |
26,947 |
-17.5% |
CPO Sales (tonnes) |
22,271 |
24,570 |
-9.4% |
Average CPO price per tonne |
549 |
707 |
-22.3% |
Palm Kernel Oil ('PKO') production (tonnes) |
1,793 |
1,648 |
8.8% |
PKO Sales (tonnes) |
1,480 |
1,322 |
12.0% |
Average PKO price per tonne |
893 |
1,015 |
12.0% |
Palm Kernel Cake ('PKC') production (tonnes) |
2,197 |
2,204 |
-0.3% |
PKC Sales (tonnes) |
2,304 |
2,229 |
3.4% |
Average PKC price per tonne |
50 |
51 |
-1.9% |
Production
· Lower year on year volumes of FFBs harvested on the eastern side of
o Q1 2018: 13,605 tonnes of CPO produced compared to 2017's record Q1 performance of 16,398 tonnes
o Q2 2018: 8,632 tonnes of CPO produced compared to Q2 2017 volumes of 10,549
·
o the Directors believe this demonstrates the Company's strong standing among the local smallholder community following increased competition for FFBs given lower amounts harvested
· Increase in H1 PKO production and stable Kernel Cake volumes compared to H1 2017
o follows successful strategy to acquire external kernels to make use of lower mill utilisation
· Consistent CPO extraction rate to 23.1% in H1 2018 compared to 23.0% in H1 2017
· Year on year improvement in FFBs processed in early
o The Board is hopeful this trend will continue for the remainder of Q3 2018 and beyond
Sales and Pricing
· 9.4% decrease in H1 CPO sales to 22,271 tonnes (H1 2017: 24,570 tonnes) reflects reduced volumes of FFBs harvested
· Further diversification of local customer base with commencement of CPO sales to
· CPO sales prices achieved lower due to weaker international benchmark pricing and the strong appreciation of the Euro against the USD (palm oil's benchmark currency)
· Lower year on year pricing and higher competition for FFBs due to lower volumes harvested have led to a contraction in H1 2018 gross margins
· Ongoing cost saving programme centred around logistics and plantation management focused on optimising performance
· Management looking to capitalise on the lower availability of CPO in the region as a result of the poor harvest to secure sales of CPO at a premium to international prices for the remainder of the year
"Meanwhile over the medium term, we are focused on transforming
** ENDS **
For further information please visit the Company's website www.dekeloil.com or contact:
|
+44 (0) 207 236 1177 |
|
+44 (0) 207 894 7000 |
|
+44 (0) 203 005 5000 |
|
+44 (0) 203 137 1903 |
|
+44 (0) 207 236 1177 |
Notes:
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