(Alliance News) - Dekel Agri-Vision PLC on Monday said palm oil production improved in 2019 despite weak final quarter.
For 2019, the west African agriculture firm reported crude palm oil production of 37,649 tonnes, a 14% increase from the 33,077 tonnes produced a year prior.
This was achieved despite a weak final quarter of 2019, when production dropped to 3,912 tonnes from 5,464 tonnes year-on-year due to the "extremely high" rainfall in September and October combined with a weak low season.
Dekel owns the Ayenouan palm oil project in Cote d'Ivoire.
The AIM-listed company said global crude palm oil prices have increased by about 70% over the past three months to USD870 per tonne from USD500 in the summer of 2019.
"Due to the peak harvest in Cote d'Ivoire falling in the first half and the recovery in crude palm oil prices only taking root in the latter months of the year, the improved trading conditions will not be reflected in the financial results for 2019," said Executive Director Lincoln Moore.
He added: "However, with prices currently trading at USD870 per tonne and this year's peak harvest season due to commence imminently, we expect to deliver a substantial improvement in financial performance in 2020."
Turning to fresh fruit bunches, Dekel said it had delivered 176,019 tonnes to the mill in 2019, up 21% from 146,036 tonnes the year before.
Dekel said it is seeing "good" fruit bunch numbers but anticipates delays in fruit ripening, with overall levels of fresh fruit branches for the first half of 2020 remaining similar to the first half of 2019.
Dekel shares were trading 1.4% higher in London on Monday morning at 3.70 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Dekel Agri (DKL)