DekelOil (LON:DKL) shares were among London's best performers early on Friday as the company said kernel crushing plant equipment had arrived at Abidjan port.
The operator and 51% owner of the Ayenouan palm oil project in Ivory Coast said the bits and pieces needed to construct the kernel crushing plant arrived on Tuesday, and are currently awaiting clearance by the customs authorities.
Once the equipment has cleared customs, it will be transported to Ayenouan and constructed; the company expects the plant will be operational by the fourth quarter of this year.
Having its kernel crushing plant (KCP) is a key part of DekelOil's strategy to maximise profitability at Ayenouan by increasing throughput. The KCP is capable of producing 80 tonnes of palm kernel oil a day, and initially it will operate at a rate of 60 tonnes a day.
"With an expected maximum capex requirement of €1.1mln, our expectation is that the KCP will have a highly attractive investment return profile which, by allowing both palm kernel oil and animal feed to be sold in the local market at the factory gate, will materially increase profitability at Ayenouan,” said DekelOil executive director, Lincoln Moore.
“Together with our rapidly increasing CPO production at our 70,000 tonnes per annum mill, which has already seen 2014's production levels exceeded in just the first four months of 2015, we are delivering on our strategy to build Ayenouan into a profitable and cash generative asset," he added.
Shares in DekelOil were up 4.0% at 1.3p in the first half hour of trading on Friday, and are up 25% year-to-date.