(Alliance News) - Dekeloil Public Ltd said Thursday that production and sales of crude palm oil rose in the six months to the end of June, though the average selling price declined.
For the period, the number of fresh fruit bunches collection in the first half of 2019 was 131,917 tonnes, up 37% from 96,195 tonnes for the same period the year before, as yields recovered to more normal levels after a poor peak harvest season in 2018.
This resulted in a 30% rise in crude palm oil production by 30% to 28,934 tonnes from 22,242 tonnes, and in turn a 20% increase in sales at 26,702 tonnes from 22,271 tonnes.
However, the average crude palm oil price fell by 8% to EUR505 per tonne from EUR549 the prior year, due to weaker international benchmark pricing.
In addition, palm kernel oil production rose by 5.7% to 1,896 tonnes from 1,480 tonnes the year before, leading to a 4.0% increase in sales to 1,539 tonnes from 1,480 tonnes.
However, the average palm kernel oil price per tonnes fell by 34% to EUR589 per tonnes from EUR893.
"This record result is not just down to the recovery seen in FFB volumes harvested in the region following the poor harvests in 2018, but also a positive reaction to the various initiatives implemented by the board across the group's operations last year. Should global CPO prices bounce off their current cyclical lows, the board is confident the combination of these various factors will enable Ayenouan's profitability to increase significantly," said Executive Director Lincoln Moore.
Shares in Dekeloil were up 2.6% at 3.18 pence on Thursday.
Dekel Agri (DKL)