Cote d’Ivoire-based Dekel Agri-Vision (LON: DKL) increased palm oil production in February. The AIM-quoted company also had good conversion rates, while the palm oil price remains strong.
February volumes are still low in comparison with last year, but they should continue to build up in March and could be higher than the same month in 2022. The high season did not start until late February this year. The extraction rate was 23.3% – a record for February.
There was 9,418/tonnes of fruit processed, which was down by 31%, while crude palm oil production was 28% lower at 2,198 tonnes with 2,102 tonnes sold during the month. Palm kernel oil production halved to 131 tonnes, and none was sold during February.
The current crude palm oil price is €984/tonne, compared with forecast assumptions of €900/tonne. Palm kernel oil prices are currently around €1,025/tonne.
Dekel Agri-Vision is actively purchasing raw cashew nuts and quarterly statistics will be published later in March.
Non-exec director Aristide Achy Brou has taken his pay in shares. He was issued 612,554 shares, taking his stake to 4.27%.
The share price has been declining all year and has reached 2.05p. That is around five times prospective earnings, with potential for that fall to three in 2024. Net debt is reducing and it is expected to be €23.9m at the end of 2023.