DekelOil swings to profit after record production in first half

Operator and 85.75% owner of the Ayenouan palm oil project in Côte d'Ivoire, DekelOil Public, announced its interim results for the six months to 30 June on Wednesday, with a record half yearly production of 28,550 tonnes of crude palm oil - up from 21,836 tonnes in the first half of 2015.

The AIM-traded firm also reported its first full half year production from the kernel crushing plant, in line with its strategy to increase sales and profitability at Ayenouan.

At the plant it produced 1,998 tonnes of palm kernel oil, and 2,360 tonnes of palm kernel cake.

It claimed a 23.6% increase in revenues to €16.0m, and a 34.8% increase in EBITDA to €3.1m, derived through selling 25,225 tonnes of crude palm oil.

DekelOil had 3,498 tonnes of crude palm oil in stock at period end, though its board claimed that position was reduced post period end to normal levels as crude palm oil pricing improved.

The company swung to a net profit after tax of €1.8m, against a €0.1m net loss a year ago.

“The record half yearly performance at the mill in terms of crude palm oil production has translated into a 23.6% rise in revenues and a 34.8% increase in EBITDA,” said DekelOil executive director Lincoln Moore.

“Together with the support we have received from our institutional cornerstone investor Miton Group, it is clear to see why we made the decision to increase our stake in Ayenouan by 34.75% to 85.75%.”

Moore said the company expects the impact of that transaction will become more apparent in the full year results.

“I am incredibly proud of our operations and team, which has achieved so much in the short time since our listing and which has already delivered significant profit growth and debt refinancing on more attractive terms since operations commenced at the mill.

“Optimising these areas will be a firm focus for DekelOil in the coming months and years ahead.”