Dekel Agri-Vision eyes strong first half as palm oil production grows

(Alliance News) - Dekel Agri-Vision PLC on Thursday said it is on track to deliver strong first half results after it reported a boost in production at its Ayenouan palm oil project in the Ivory Coast.

The West Africa-focused agricultural company said fresh fruit bunch volumes increased by 30% in the first quarter of 2024 to 54,381 tonnes from 41,819 the year before.

Crude palm oil production grew by 24% to 11,510 tonnes from 9,318 in the corresponding quarter the previous year, while CPO sales were 19% higher at 9,317 tonnes, compared to 7,843.

Dekel Agri-Vision said it expects its high CPO inventory to underpin strong sales volumes in the second quarter of the year.

However, the firm's quarterly CPO sales price was EUR762 per ton, down 22% from the "record" price of EUR974 per ton achieved in the first quarter of 2023.

Looking ahead, due to the relatively strong production volume, the firm said it remains on track to deliver a strong first half performance.

Director Lincoln Moore commented: "The major catalyst for the next phase of growth and share price performance is the cashew operation. With shelling and peeling equipment scheduled for delivery in June and installation being overseen by a highly credentialed cashew processing consultant, we are edging closer towards being in a position to ramp up production at optimum levels of quality."

Shares in Dekel Agri-Vision fell 7.4% to 1.25 pence each in London on Thursday morning.

By Sabrina Penty, Alliance News reporter

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