(Alliance News) - Dekel Agri-Vision PLC on Thursday said its palm oil production surged by half in 2023 from its Ayenouan site in the Ivory Coast, but noted that prices fell.
Dekel shares plummeted 21% to 1.55 pence each on Thursday in London.
The West Africa-focused agricultural company said fresh fruit bunch production increased to 182,362 tonnes in 2023, up 56% from 116,733 tonnes the year prior.
It said crude palm oil production also grew 512% to 39,073 tonnes in 2023, from 25,751 tonnes a year ago, but CPO extraction was down to 21.4%, from 22.1% on-year.
The firm sold 38,896 tonnes of crude palm oil, increasing 50% from 26,016 tonnes.
Dekel noted that palm kernel oil production also increased 33% to 2,420 tonnes, from 1,820 tonnes, while PKO sales rose 21% to 2,404 tonnes, from 1,991 tonnes.
Average sales prices for CPO were down 15% to EUR869, from EUR1,025, while PKO prices fell 40% to EUR828, from EUR1,381.
The firm also noted that it began production in its cashew operation in 2023, but noted that daily production was affected by technical issues with machinery. It said daily should improve in the first quarter of 2024, with significant improvements made in the second quarter.
Executive director Lincoln Moore said: "Ten consecutive months of stronger like for like CPO production resulted in a 51.7% increase in 2023 CPO production compared to last year which was an excellent outcome. Coupled together with continued relatively high CPO prices compared to historical levels, FY2023 has been one of the best annual financial performances delivered by the Palm Oil operation.
"The Cashew Operation achieved a number of key milestones during its first year of commercial production, however, daily production rates continues to be impacted by the performance of the shelling and peeling sections. Solutions are being implemented and we will continue to update the market as we increase production."
By Harvey Dorset, Alliance News reporter
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Dekel Agri (DKL)