(Sharecast News) - West Africa-focussed agriculture company Dekel Agri-Vision reported a significant increase in April production at the Ayenouan palm oil project in Côte d'Ivoire on Wednesday.
The AIM-traded firm reported a 119.1% increase in fresh fruit bunches processed, while crude palm oil production grew 108.4% year-on-year.
Its crude palm oil sales for the month of April also increased by 123% compared to the same period in 2022.
Dekel said the increase in production was driven by the high season for fresh fruit bunches starting later than previous years, as well as lower prior-year comparables due to the weak fresh fruit bunch 2022 high season.
The company's palm kernel oil production also saw an increase of 93.9% compared to the same period last year.
Despite international crude palm oil prices slightly softening during the month to around $975 to $1,000 per tonne, the firm's sales prices for crude palm oil remained high at €976 ($1,069) per tonne.
Dekel put that down to strong local crude palm oil demand, and premium local crude palm oil sales prices continuing to be achieved.
The board said the overall financial performance for April was a "standout" outcome, adding that it expected to see strong palm kernel oil sales quantities in the coming months as stock levels on hand increased.
Dekel's crude palm oil extraction rate was slightly lower than last month, but remained sound at 21.4%.
The board said the delivery of peak fresh fruit bunch volumes tended to lead to increased double-handling of fresh fruit bunches at the mill site awaiting processing, similar to last month.
"We are pleased to see the palm oil operation's high season come to fruition, which began later than its usual schedule this year, culminating in a record monthly production outcome for April," said executive director Lincoln Moore.
"The production of crude palm oil has demonstrated continued strength in early May, compared to May last year.
"These positive trends bode well for the palm oil operation, positioning it to achieve an excellent period of production and financial performance throughout the second quarter of 2023."
At 1231 BST, shares in Dekel Agri-Vision were up 9.35% at 3.8p.
Reporting by Josh White for Sharecast.com.
Dekel Agri (DKL)