Dekel Agri-Vision “Significant upside on the way” Nick Spoliar WHIreland

Dekel Agri-Vision (LON:DKL) is the topic of conversation when Nick Spoliar, Analyst at WHIreland caught up with DirectorsTalk.

Dekel Agri-Vision has now provided its half year production update for the period ending 30 June 2023, what were the highlights we should note?

The key highlights are (1) the excellent performance from palm oil, very strongly ahead YoY in Q2 as volumes came through strongly (+>260% in Q2) and pricing remained strong, while (2) the company successfully transitioned cashews to a continuous production model, the platform for ramping up production during the course of H2.

How does this compare with last year’s figures?

Overall volumes are dramatically ahead YoY in percentage terms (FBB: 50%-plus, CPO, near-50%).  CPO (Crude Palm Oil) production is down on last year, but still very strong by historical standards.  PKO (Palm Kernel Oil) is 35% ahead YoY, encouraging given the higher margins which are attached to this side of the business.

How do you see the outlook for the company?

We see significant upside on the way as palm oil continues strong and cashews fulfil their promise, on the back of anticipated positive quality ratings and with attractive markets to go for.   Our forecasts encapsulate a major shift upwards as the new strand of the business comes into its own, with PBT moving decisively into profit in the current year and exceeding €5m in FY24E, again at the current share price equating to attractive single digit PE ratings.

What news flow would you hope to see over the coming months?

Dekel Agri-Vision provides an impressive level of clarity and visibility over its operations, since it reports operationally on its palm oil activities on a monthly basis while also reporting cashews quarterly as well as the usual trading updates.  We hope (and expect) to see ongoing positive operational updates on palm oil accompanied by news of cashew nut operations ramping up and further affirmations of our forecasts.  Last but not least, we anticipate increasing cash generation from the company as the latter takes place.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Share on twitter
Share on linkedin
Dekel Agri-Vision PLC

More articles like this

Dekel Agri-Vision PLC

Dekel Agri-Vision achieves strong full year financial performance

Dekel Agri-Vision Plc (LON:DKL), the West African agribusiness company focused on building a portfolio of sustainable and diversified projects, has announced its unaudited interim results for the six months ended 30 June 2023. Key Highlights Palm Oil Operation ·      H1 2022 revenue

Dekel Agri-Vision PLC

Palm rises on Dalian strength

Malaysian palm oil futures opened higher on Monday, tracking gains in rival Dalian oils and helped by a softer ringgit. The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange rose 27 ringgit, or 0.73%,

Dekel Agri-Vision PLC

Why sustainable palm oil?

We are in a climate crisis. Unsustainable agricultural production of various crops can exacerbate climate change, destroy ecosystems, and endanger wildlife. They can also cause conflicts over land ownership and erode workers’ rights. However, while unsustainable production can

Dekel Agri-Vision PLC

Dekel reports robust month for palm oil operation

West Africa-focussed agriculture company Dekel Agri-Vision updated the market on its Ayenouan palm oil venture in Côte d’Ivoire on Friday. The AIM-traded firm said its palm oil operation marked its sixth successive month of amplified production in August. It reported

Dekel Agri-Vision PLC

Producers work to ensure palm oil is responsibly sourced

Much of the concern about oil sustainability focuses on palm oil as it has been linked to deforestation, which negatively impacts the environment, forest wildlife and the communities where it’s grown. The Roundtable for Sustainable Palm Oil (RSPO)

Dekel Agri-Vision PLC

Malaysian palm edges higher

Malaysian palm oil futures recovered on Tuesday, helped by a weaker ringgit and stronger palm oil on the Dalian Commodity Exchange, although imminent oversupply concerns capped gains. The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia

Dekel Agri-Vision PLC

Palm rises tracking stronger rival oils

Malaysian palm oil futures rose on Friday tracking stronger rival vegetable oils, and were set for a second straight week of gains. The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange gained 30 ringgit, or 0.77% to

Dekel Agri-Vision PLC

The ‘resilient’ palm oil demand

While the imports of pretty much everything else has gone down – Pakistan’s love for palm oil seems to be intact. Pakistan imported 3 million tons of palm oil in FY23 – much in line with previous highs

Dekel Agri-Vision PLC

Palm oil rallies over 3%

Malaysian palm oil futures jumped more than 3% on Tuesday, set to end a three-session decline on a weaker ringgit, improving exports and strength in rival edible oils. The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange was up 115 ringgit, or

Dekel Agri-Vision PLC

Sustainability is a continuous journey

Joseph D’Cruz has more than 20 years of experience in sustainability, having worked for various international organizations like the United Nations Development Programme and the World Economic Forum, on issues ranging from climate change to poverty eradication to

Dekel Agri-Vision PLC

Sustainability matters when considering palm oil strategies

Sustainability concerns have given food companies reason to consider altering their approaches to palm oil, a commodity linked to deforestation. Companies should be aware researchers are investigating how oils produced with yeast or algae may serve as palm

Dekel Agri-Vision PLC

Palm oil sector to get boost in second half of 2023

The accession of the United Kingdom to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), improved labour conditions and a softer ringgit are expected to be the catalysts for the palm oil sector to be fruitful in

Dekel Agri-Vision PLC

Deploying innovation in the palm oil industry

The utilisation of palm oil is widespread as a vegetable oil and it is used in various industries such as food, personal care products, and biofuels. The production of palm oil has experienced a notable rise on a

Dekel Agri-Vision PLC

Palm oil rebounds on firm demand

Malaysian palm oil futures rebounded on Wednesday, lifted by robust demand for the commodity and tracking higher rival soyoil prices. The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 35 ringgit, or 0.9%,

No more posts to show