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LONDON (Alliance News) - Palm oil producer DekelOil Public Ltd Friday said it is expecting to break even in its first year of trading and said it is expecting production to significantly increase during 2015 after it brings a new logistical hub online in the next two weeks.
For 2014, the company is expecting revenue to reach around EUR10 million and said it is expecting to break even at the earnings before interest, tax, depreciation and amortization level.
The company's first plant in the Ayenouan palm oil project in the Ivory Coast was commissioned in March, which is when production began.
For the period between March 1 and December 31, the company produced 14,242 tonnes of crude palm oil and 2,504 tonnes of kernels.
Production in January is expected to reach around 2,000 tonnes of crude palm oil, which would be "100% higher than production in December as logistic initiatives" begin to take off, it said.
DekelOil "expects a significant increase in crude palm oil production in 2015, the mill's first full year of operations," after it was commissioned in March.
Sales of palm oil reached 13,900 tonnes between March and December, at an average price of EUR647 per tonne. It sold 2,444 tonnes of kernels in the period at an average price of EUR183 per tonne.
DekelOil's third logistical hub in the region is set to be completed in the next two weeks, which is in advance of the peak harvesting season, said the company.
"With a further collection hub due to be operational in time for the upcoming March to June high season, the Directors are confident the upward trend in monthly production will continue after seasonal effects are taken into account, resulting in a significant increase in 2015 annual production," said DekelOil.
DekelOil shares were down 4.9% to 0.975 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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