Dekel reports record month for palm oil operation

Dekel Agri-Vision reported an exceptional performance from its Ayenouan palm oil project in Côte d'Ivoire in November on Monday, setting new records for production and sales.

The AIM-traded firm said that during November, the palm oil operation achieved a 152.4% increase in crude palm oil production compared to the same month last year.

It marked a record November monthly production and continued a nine-month streak of higher like-for-like monthly CPO production.

Additionally, like-for-like CPO sales volumes for November surged 82.1% year-on-year, primarily driven by the robust monthly CPO production.

Amid the significant increase in production, CPO sales prices in November held steady at €788 per tonne.

Dekel said local CPO prices remained below international rates, balanced by reduced fresh fruit bunch (FFB) purchase prices, ensuring the maintenance of healthy gross margins.

Another positive development was the substantial increase in the CPO extraction rate, which reached 21.7% in November, representing a 3.8% improvement compared to November 2022.

The boost in the extraction rate also contributed to a solid monthly gross margin performance.

"A 152.4% increase in crude palm oil production in November compared to last year was an exceptional outcome and together with a significant improvement in the extraction rate has contributed to a record November monthly performance," said executive director Lincoln Moore.

"We look forward to the palm oil operation finishing the year strongly and reporting our annual 2023 production results in early January."

At 1447 GMT, shares in Dekel Agri-Vision were up 5.26% at 2p.

Reporting by Josh White for Sharecast.com.