MARKET DEVELOPMENT
UPDATE - Dekeloil's Palm Oil Production Surpasses Expectations
UPDATE - Dekeloil's Palm Oil Production Surpasses Expectations
08/04/2015 (Proactive Investors.co.uk) - DekelOil (LON:DKL) expects to surpass the whole of last year’s palm oil production by the end its second quarter as output from its Ivory Coast operation climbs rapidly.
The company produced 9,678 tonnes of crude palm oil (CPO) in the three months to March, its first quarter, better than management expected and compared to 14,242 tonnes in the whole of 2014.
Production rose sharply month on month with March’s output of 4,352 tonnes more than double January’s.
Kernel production followed a similar trend with the quarterly total rising to 1,603 tonnes, of which 45% was produced in March.
DekelOil said yields also rose, to 23.9%, compared to 22.7% over the whole of 2014.
During the quarter it sold 8,327 tonnes of crude palm oil at €604 per tonne ex-mill with 1,538 tonnes of kernel sold at €183 per tonne.
Lincoln Moore, DekelOil’s executive director, told Proactive that production in the first half of the year should be between 20,000-22,000 tonnes, while production over the year was on course for 35,000 tonnes compared to a previous forecast of 30,000.
“We view the excellent month on month increases in production as validation of the logistics network we have put in place in the area around the Mill, including the establishment of three collection hubs and the expansion of our own truck fleet.”
“As the peak harvesting season gets into full swing, we are therefore ideally placed to maintain the strong momentum behind the business.
Moore said even with this higher output its mill would only be running at 50% capacity, with the new kernel crushing plant to come on stream by the end of the year.
Shares rose 9% to 0.95p.
The company produced 9,678 tonnes of crude palm oil (CPO) in the three months to March, its first quarter, better than management expected and compared to 14,242 tonnes in the whole of 2014.
Production rose sharply month on month with March’s output of 4,352 tonnes more than double January’s.
Kernel production followed a similar trend with the quarterly total rising to 1,603 tonnes, of which 45% was produced in March.
DekelOil said yields also rose, to 23.9%, compared to 22.7% over the whole of 2014.
During the quarter it sold 8,327 tonnes of crude palm oil at €604 per tonne ex-mill with 1,538 tonnes of kernel sold at €183 per tonne.
Lincoln Moore, DekelOil’s executive director, told Proactive that production in the first half of the year should be between 20,000-22,000 tonnes, while production over the year was on course for 35,000 tonnes compared to a previous forecast of 30,000.
“We view the excellent month on month increases in production as validation of the logistics network we have put in place in the area around the Mill, including the establishment of three collection hubs and the expansion of our own truck fleet.”
“As the peak harvesting season gets into full swing, we are therefore ideally placed to maintain the strong momentum behind the business.
Moore said even with this higher output its mill would only be running at 50% capacity, with the new kernel crushing plant to come on stream by the end of the year.
Shares rose 9% to 0.95p.