Dekel Agri Share News (DKL)

(Sharecast News) - West Africa-focussed agriculture company Dekel Agri-Vision updated the market on production and sales at its Ayenouan palm oil project in Côte d'Ivoire on Wednesday.
The AIM-traded firm said May saw a continuation of the recent trend of stronger crude palm oil sales and higher year-on-year pricing levels offsetting lower crude palm oil production.

In addition, the month was expected to be another profitable month for the company.

Dekel said Ayenouan was still operating with "relatively minimal disruption" from Covid-19, although the firm was adhering to government advice and guidance to help ensure the wellbeing of staff and the local communities.

During May, 14,121 tonnes of fresh fruit bunches were processed, which was down 38.6% year-on-year, while 3,316 tonnes of crude palm oil was produced - a fall of 37.6%.

Dekel said 5,309 tonnes of crude palm oil was sold in the month, up 7.5% over the same time last year, with the average crude palm oil price per tonne rising 16.6% to €541 (£481.83).

Palm kernel oil production was down 1.7% at 337 tonnes, with palm kernel oil sales surging 247.5% to 106 tonnes, while the average palm kernel oil price per tonne slipped 2.5% to €595.

Production of palm kernel cake rose 8.7% to 489 tonnes, with palm kernel cake sales ahead 59% at 607 tonnes, while the average price per tonne of palm kernel cake was ahead 7.3% at €59.

"To be on course to report another profitable month for our palm oil operations during these challenging times and markets is highly encouraging," said executive director Lincoln Moore.

"International crude palm oil prices recovering to the $600 level and extraction rates remaining high, provide further cause for cautious optimism with regards to trading during the months ahead despite the ongoing Covid-19 pandemic and associated global downturn.

"I look forward to providing further updates on production at Ayenouan as well as progress reports on the development of our cashew processing project at Tiebissou, which remains on course to commence production in the first half of 2021."

As it had previously announced, Dekel said it was issuing crude palm oil production figures on a monthly basis during the current crisis, to provide shareholders with increased visibility on operations and trading during the pandemic and associated market volatility.

It said it intended to revert to issuing production updates on a quarterly basis, once the impact of Covid-19 subsides and trading conditions normalise.

At 0955 BST, shares in Dekel Agri-Vision were flat at 2.55p.