DekelOil Public Limited (LON:DKL) will spend around €1mln improving its palm oil facilities in the Ivory Coast ahead of next year’s March - June season.
A press to extract additional crude palm oil (CPO) from empty fruit bunches will cost €485,000 but boost extraction by 0.5 percentage points and pay for itself within a year.
An additional 3,000t tank at a cost of €300,000 will add 60% more capacity and increase flexibility over palm oil sales, while Dekeloil has put down a €0.2mln deposit, out of a total cost of €1.25mln, on a back-up boiler.
Lincoln Moore, executive director, said: "These capital investments, which have been in our sights since the Mill became operational, are expected to improve operating margins, de-risk operations and provide more flexibility with sales pricing going forward.”
“Our ability to make these investments, while preserving our ability to return capital to our shareholders in the form of dividends, is reflective of our strong balance sheet.”