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DekelOil reveals new half year palm oil production record

For the full year DekelOil will see the benefit of a recent transaction to lift its stake in the Ayenouan palm oil operation in Côte d'Ivoire.

Palm oil kernels to be processed
Revenue was up 23.6% to €16mln in the first half

Dekeloil Public Ltd (LON:DKL) has revealed record half yearly palm oil production, turning out some 28,550 tonnes of crude palm oil (CPO) in the six months ended June 30.

It marks DekelOil’s first full half year producing with a new kernel crushing plant, and confirms it is operating in line with the strategy to increase sales and profitability at the Ayenouan palm oil operation in Côte d'Ivoire.

Revenue was up 23.6% to €16mln, from €12.9mln, while earnings rose 34.8% to €3.1mln.

That comes from the sale of a total of 25,225 tonnes of CPO in the six month period, and the group had 3,498 tonnes in stock at the end of the half.

DekelOil noted that its stockpile has reduced since the end of June, back to normal levels, as CPO prices have since improved.

The company also highlighted a significant transaction, in its acquisition of an additional 34.75% of its majority owned business, CS DekelOil Siva Limited. The deal effectively saw DekelOil’s stake in Ayenouan rise to 85.75%.

It means that DekelOil will keep a larger proportion of Ayenouan's growing revenue stream and cash flows and, according to the company, it can help accelerate the roll-out of its strategy to build a leading West Africa based palm oil producer.

“Together with the support we have received from our institutional cornerstone investor Miton Group, it is clear to see why we made the decision to increase our stake in Ayenouan by 34.75% to 85.75%,” said Lincoln Moore, executive director.

“We expect the impact of this transformational transaction on our financials will become more apparent in our full year results.

Moore added: “I am incredibly proud of our operations and team, which has achieved so much in the short time since our listing and which has already delivered significant profit growth and debt refinancing on more attractive terms since operations commenced at the Mill. 

“Optimising these areas will be a firm focus for DekelOil in the coming months and years ahead."

Quick facts: Dekeloil Public Ltd

Price: 2.6 GBX

AIM:DKL
Market: AIM
Market Cap: £11 m
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