---adds share price and broker comment---
Shares in palm oil group DekelOil (LON:DKL) nudged 4% higher on Wednesday as it said it expects to report significant production and revenue growth and to report first meaningful full year profits in 2015.
The group continues to focus on increasing output at its Ayenouan project in Ivory coast.
Its mill was commissioned in March last year and production for the nine months to end December stood at 14,242 tonnes of crude palm oil (CPO) and 2,504 tonnes of kernels, it said.
Post period end, production between January and April this year has already surpassed the full year 2014 figure, including record monthly production of 4,818 tonnes for April 2015, the company highlighted.
Lincoln Moore, executive director, said last year saw the company transform into an operator of a producing, cash flow positive and vertically integrated palm oil project.
"This now includes one of West Africa's largest extraction mills, a state of the art nursery, approximately 2,000 hectares of company-owned plantations, and long term contracts covering 27,000 hectares of mature estates owned by local smallholders," he said.
"We are focused on maximising profitability at Ayenouan by increasing CPO production towards the Mill's 70,000 tonnes annual capacity, constructing a kernel crushing plant to add another significant revenue stream, and planting more company-owned estates.
"Excellent progress is being made on all three fronts: CPO production during the period January and April 2015 has already surpassed 2014's total; the kernel plant is on course to commence operations in Q4 2015; and we will be adding to our planted estates."
Sales from March to December 2014 stood at 13,900 tonnes at an average price per tonne of €647 ( around US$861).
Although the CPO price has weakened slightly as a result of the fall in oil prices, strong local and regional demand enabled the company to sell its CPO at a premium to CIF Rotterdam CPO prices and Dekel expects this trend to continue.
The net loss for the year was €2.56mln compared to a loss of €1.47mln in 2013 on revenues of €10mln (2013: €465,000). Gross profit was €1.6mln compared to a loss of €17,000 in 2013.
Broker N+1 Singer said the results highlighted a successful first year of revenue-generating operations in Côte d’Ivoire, in which it had narrowly exceeded its expectation of EBITDA break-even.
"2015 has started strongly in volume terms and we look forward to further near-term news flow regarding financial performance achieved in the first half of 2015.
"The next strategic milestone will be the commissioning of the kernel crushing plant in Q4’15, which we expect to enhance profitability significantly."
The broker noted its estimates remained unchanged and it noted the attractive EV/EBITDA valuation for a strategically attractive asset in the increasingly recognised West African palm oil producing region.
DekelOil shares rose 4.35% to 1.20p.