Dekel Agri-Vision Reports Mixed May Palm Oil Results, Cashew Operation Continues Momentum
Why we think this is neutral
The RNS provides a mixed update on Dekel Agri-Vision's operations, with lower palm oil production and sales volumes offset by strong pricing and continued improvements in the cashew segment. While the company reiterates guidance for a significantly improved full-year performance, the temporary dip in palm oil production is a concern.
Key Points
- Crude Palm Oil production down 22.9% year-over-year
- CPO sales volume down 14.0%, but prices up 23.0% to €956 per tonne
- Palm Kernel Oil prices up 56.9%
- Cashew operation continues to show operational improvements
- Planned capacity expansion in cashew operation through modest investment
- Company reiterates guidance for significantly improved full-year performance in 2022
Summary
The agriculture company reports lower palm oil production and sales, but strong pricing and continued momentum in its cashew operation.
Dekel Agri-Vision Plc (AIM: DKL), the West African agriculture company, has provided a May 2022 production update for its palm oil and cashew operations in Côte d'Ivoire. Key highlights include:
- Crude Palm Oil (CPO) production down 22.9% year-over-year, with lower Fresh Fruit Bunches processed and slightly lower extraction rate.
- CPO sales volume down 14.0%, but prices up 23.0% to €956 per tonne.
- Palm Kernel Oil (PKO) prices up 56.9%.
- Cashew operation continues to show operational improvements, with plans to increase daily production capacity from 20 to 30-35 tonnes per day through a modest €175,000 investment.
- The company reiterates guidance for a significantly improved full-year performance in 2022, including its first-ever EBITDA-positive result.
Broker Targets: No broker targets were provided in the information given.
Key Dates
2022
Company expects significantly improved full-year performance, including first-ever EBITDA-positive result
Q3 2022
Cashew operation capacity expansion to be operational
OPERATIONS UPDATE