08:00 Fri 10 Jul 2020
Dekel Agri-Vision - Half Year Production Update
Half Year Production Update
Stronger year on year global Crude Palm Oil ('CPO') prices and better extraction rates achieved are expected to more than offset lower CPO volumes produced during the first half of the year ('H1 2020'). The Company therefore expects to report an improved trading and financial performance for the six months to
| Q2 2020 | Q2 2019 | Change | H1 2020 | H1 2019 | Change |
| | | | | | |
FFB Processed (tonnes) | 50,293 | 62,577 | -19.63% | 106,188 | 131,917 | -19.50% |
CPO production (tonnes) | 11,801 | 14,013 | -15.79% | 23,882 | 28,934 | -17.46% |
CPO Sales (tonnes) | 12,858 | 14,693 | -12.49% | 23,906 | 26,702 | -10.47% |
Average CPO price per tonne | | € 488 | 12.30% | | € 505 | 19.21% |
PKO production (tonnes) | 944 | 953 | -0.94% | 1,715 | 1,896 | -9.55% |
PKO Sales (tonnes) | 478 | 606 | -21.11% | 1,002 | 1,539 | -34.93% |
Average PKO price per tonne | | € 583 | 0.86% | | € 589 | 6.6% |
PKC production (tonnes) | 1,514 | 1,249 | 21.23% | 2,683 | 2,525 | 6.26% |
PKC Sales (tonnes) | 1,863 | 1,063 | 75.25% | 2,690 | 2,274 | 18.30% |
Average PKC price per tonne | | € 55 | 7.27% | | € 55 | 9.09% |
Production
· In line with the experience of all operators in the region, Dekel suffered a drop in FFB harvested after a strong March and April resulting in lower year on year CPO volumes for May and June
· Pleasingly, Dekel saw higher quality FFB than last year, particularly in Q2 2020 where the extraction rate achieved was 23.6% (Q2 2019 22.4%).
· H1 2020 Palm Kernel Oil ('PKO') production of 1,715 tonnes (Q2 2020: 944 tonnes) compares to 1,896 tonnes in H1 2019 (Q2 2019: 953 tonnes)
· 6% increase in Palm Kernel Cake ('PKC') production in H1 to 2,683 tonnes (H1 2019: 2,525 tonnes)
Sales and Pricing
· 19.2% increase in CPO prices to
· Strong extraction rates and higher CPO prices expected to lead to an improvement in year on year H1 financial performance
· Operations have continued as normal despite the COVID-19 global outbreak, however CPO Pricing has been adversely affected
· CPO is currently trading at approximately
o Global CPO pricing benchmarks prior to the pandemic traded at around
· Reduction in PKO sales in H1 2020 reflects impact of COVID-19 on demand for premium PKO oil; the Company expects higher than normal stock levels will unwind during the H2 2020 low season
"During H2, we will continue to focus on extracting as much value as possible out of each fruit that is delivered to the mill for processing. With momentum building behind the development of our large scale cashew processing project at Tiebissou, which remains on course to be completed in Q2 2021, we believe Dekel is well placed to deliver its objective to scale up and diversify its revenue profile. I look forward to providing further updates on our progress."
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
** ENDS **
For further information please visit the Company's website www.dekelagrivision.com or contact:
| +44 (0) 207 236 1177 |
Arden Partners Plc (Nomad and Joint Broker)
| +44 (0) 207 614 5900 |
| +44 (0) 203 137 1903 |
| +44 (0) 207 236 1177 |
Notes:
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