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LONDON (Alliance News) - Dekeloil Public Ltd said Tuesday its crude palm oil production in the first quarter increased by almost 10% but sold less crude palm oil at a lower price.
In the three months ended March 31, the company produced 14,921 tonnes of crude palm oil, 9.7% higher than the same period the year before.
Dekeloil said the increase was due to "materially" higher production in February and March compared to the corresponding period the year before, which more than offset the lower year-on-year production in January.
The company's fresh fruit bunches collected increased by 17% in the first quarter to 69,340 tonnes. Dekeloil said the increase represents a recovery in yields to "more normal levels" following a "poor harvest season" in 2018.
Dekeloil's crude palm oil sales decreased 13% to 12,009 tonnes with the average price per tonne decreasing 5.1% to EUR520.
The company said it sells its crude palm oil at a premium to international prices but the international benchmark prices remain "weak". In the first quarter, Dekeloil sold its crude palm oil at an average 9.5% premium.
Dekeloil remains "optimistic" crude palm oil pricing will improve over the next 12 months due to both cyclical and structural factors.
"The strong rebound in crude palm oil volumes produced at our mill during the first quarter confirms last year's poor harvest was the anomaly many in the local palm oil industry had predicted. We remain optimistic that the second quarter of 2019 will also be stronger than the second quarter of 2018," said Executive Director Lincoln Moore.
Dekeloil also announced it has made an application for the admission of 1.1 million shares to be issued to "certain advisers" in settlement of fees for services provided. Dekeloil's issued share capital following admission will be 353.3 million.
Shares in Dekeloil closed up 6.1% Tuesday at 3.50 pence each.
