(Alliance News) - DekelOil Public Ltd on Thursday reported both a decline in crude palm oil production and prices in the third quarter of 2019.
DekelOil, which produces from the Ayenouan project in the Ivory Coast, registered an 11% fall in crude palm oil production for the three months to September 30 to 4,803 tonnes. The average price per tonne fell 16% to EUR456.
However, the company did increase crude palm oil sales by 31%, to 7,138 tonnes, in part driven by the sale of stored stock.
For the nine months to September, DekelOil's crude palm oil production was 33,746 tonnes, 22% higher than the year before.
"With 33,746 tonnes of crude palm oil produced during the nine months to the end of September, full year production at Ayenouan is on track to return and likely exceed the levels we reported prior to 2018's anomalous peak harvest season," said Executive Director Lincoln Moore.
"A recovery of crude palm oil prices from cyclical lows would further assist Ayenouan in boosting profitability to and above previous levels, hence, we are encouraged by the recent gradual recovery in crude palm oil prices. Despite crude palm oil prices continuing to be well below historical averages of EUR725 per tonne, we remain very optimistic of improved pricing in the next six to 12 months and beyond," he added.
Fresh fruit bunch production for the quarter fell 1.1% to 24,665 tonnes, while palm kernel oil production rose 2.3% to 538 tonnes. Palm kernel oil sales rose 42% to 819 tonnes.
DekelOil's palm kernel cake production jumped 70% to 1,158 tonnes, and sales more than doubled to 1,459 tonnes.
"Together with the recent strengthening of our balance sheet following the AgDevCo debt refinancing in July, this is an exciting period in our development, particularly with work underway at our cashew processing project in Tiebissou where an initial 10,000 tonnes per annum plant is on course to be commissioned in the second half of 2020," continued Moore.
"At this point, DekelOil will not only be known as Dekel Agri-Vision, but will also have two producing projects each generating material and diversified revenue streams. I look forward to providing further updates on our progress."
The name change to Dekel Agri-Vision Ltd was announced in mid-September, reflecting "the multi-project, multi-commodity strategy being implemented". A vote on the change is being held in London on Thursday.
Shares were 2.4% lower on Thursday morning in London at 2.00 pence each.
By George Collard; georgecollard@alliancenews.com
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Dekel Agri (DKL)