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LONDON (Alliance News) - DekelOil Public Ltd Tuesday said it is on course for a "significant step change in profitability" in the year ahead after it reported a substantial rise in production in the first six months of 2015.
The palm oil company produced 21,836 tonnes of crude palm oil in the six months ended June 30. That is up 53% from the 14,242 tonnes produced between February 2014, when production began, to December 2014.
It also produced 3,733 tonnes of kernels in the six month period, up from 2,504 tonnes between February and December 2014.
Crude palm oil is used in a variety of products, mainly in food, and is sourced from fresh fruit bunches whilst kernel palm oil is derived from the kernel of the same fruit.
"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 crude palm oil at our state of the art mill in Ayenouan," said Executive Director Lincoln Moore.
The company currently produces all of its crude palm oil from the Ayenouan project in the Ivory Coast. DekelOil has a 51% stake, with partners Biopalm Energy Ltd holding the remaining stake.
DekelOil said its crude palm oil extraction rate was 24% from 90,879 tonnes of fresh fruit bunches. DekelOil said this "compares favourably to other crude palm oil extraction mills".
"Having already exceeded 2014's crude palm oil 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," added Lincoln.
In June, the company said it expected to report its first "meaningful full-year profits" in 2015.
Sales of crude palm oil totalled 19,184 tonnes at an average price of EUR617 per tonne whilst kernel sales came in at 3,760 tonnes at an average price of EUR183 per tonne. Between February and December 2014, DekelOil sold 13,900 tonnes of palm oil at an average price of EUR647 per tonne and sold 2,444 tonnes of kernels at an average price of EUR183 per tonne.
"Strong local and regional demand has enabled DekelOil to sell its crude palm oil at a premium to CIF Rotterdam crude palm oil prices - the company expects this trend to continue," said the company.
The company said the new kernel crushing plant at Ayenouan which is currently being constructed is expected to begin contributing to revenue in the fourth quarter of 2015.
In addition, the company said it has issued 740,146 new shares to settle outstanding fees owed to certain advisers.
DekelOil shares were down 0.8% to 1.23 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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