DekelOil (LON:DKL) is set for a step-change in profitability, executive director Lincoln Moore said, as the company released bumper production figures for the first half of 2015.
The Ayenouan mill in the Ivory Coast produced 21,836 tonnes of crude palm oil (CPO) in the first six months of this year, which includes the peak harvest between March and June. It represents a 53% increase on the 14,242 tonnes that were produced in the whole of 2014.
The mill achieved a 24% extraction rate, from 90,879 tonnes of fresh fruit bunches; this compares favourably to other operations, Dekel said.
During the six month period Dekel sold 19,184 tonnes of palm oil. As a result of strong local and regional demand, it achieved a premium average of €617 per tonne.
"As these excellent half year production figures demonstrate, the comprehensive logistics strategy we have put in place is clearly bearing fruit, resulting in a significant increase in fresh fruit bunches being collected for processing into CPO at our state of the art Mill in Ayenouan,” Moore said.
“Having already exceeded 2014's CPO production by a substantial margin in just the first six months of 2015, we are on course to report a significant step change in profitability in the year ahead.
“With the new kernel crushing plant due to generate an additional revenue stream from Q4 2015 onwards, and our company-owned estates reaching maturity, the strong momentum behind the business is set to be maintained in the years ahead, as we transform DekelOil into a leading West African focused palm oil company."