Dekel Agri-Vision, an AIM-traded company, announced notable growth in its February production update for the Ayenouan palm oil project in Côte d’Ivoire. The company reported a significant increase in fresh fruit bunches processed, reaching 17,294 tonnes, which represents an 83.6% year-on-year rise. This increase resulted in a substantial 70.2% boost in crude palm oil production, totalling 3,742 tonnes. Palm kernel oil production also saw a notable rise of 58.8%, reaching 208 tonnes.
Crude palm oil sales for February amounted to 2,472 tonnes, reflecting a 17.6% increase compared to the previous year. However, the average price per tonne of crude palm oil declined by 22.7% to €759. Palm kernel oil sales stood at 108 tonnes, with an average price per tonne of €770, even though no sales were recorded in February last year.
The palm oil operation’s consistent growth trajectory continued into 2024, marking the 12th consecutive month of higher monthly crude palm oil production. Despite the positive production and sales figures, the crude palm oil extraction rate for February was 21.6%, indicating a slight increase from January but remaining 7.3% lower than the same period last year. Efforts to manage local food prices had contributed to lower extraction rates, although healthy gross margins were maintained due to lower fresh fruit bunch purchase prices.
Lincoln Moore, executive director, stated, “Crude palm oil production has started 2024 significantly ahead of the strong 2023 production year. March is typically the start of the three-to-four month peak high season and should this production momentum continue, we are well positioned to exceed market crude palm oil production expectations for the first half of 2024.”
Additionally, Dekel Agri-Vision announced the issue of 670,000 ordinary shares to certain advisers as a settlement of fees for services provided. The application for the admission of those shares to the London Stock Exchange was underway, with an expected effective date of around 18 March. Following admission, the company’s issued share capital would comprise 560,074,153 ordinary shares.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
