Dekel Agri-Vision Reports Strong Start to 2025 for Palm Oil Operation
Why we think this is good
The RNS indicates that Dekel's palm oil operation had a strong start to 2025, with significantly higher CPO sales prices, improved extraction rates, and increased sales volumes. The cashew operation also continued its positive trend, with the company anticipating significantly improved results and its first-ever EBITDA-positive performance in 2025. These positive factors outweigh the slight decrease in CPO production.
Key Points
- CPO production decreased slightly by 2.6% compared to January 2024
- CPO extraction rate improved by 5.7% to 22.2%
- CPO sales volume increased by 14.2%, driven by the sale of December 2024 year-end stock
- CPO sales price increased by 34.9% to €994 per tonne, reflecting continued strength in international CPO prices
- Palm Kernel Oil (PKO) sales price saw a substantial rise compared to prior months
- Cashew operation continued its recent positive trend, with the company anticipating significantly improved results and its first-ever EBITDA-positive performance in 2025
Summary
Dekel Agri-Vision Plc (AIM: DKL), the West African agriculture company, has provided a January 2025 production update for its Ayenouan palm oil project in Côte d'Ivoire, as well as an update on the operational performance of its cashew processing plant at Tiebissou, Côte d'Ivoire. The palm oil operation had a strong start to 2025, with Crude Palm Oil (CPO) sales prices significantly higher than in January 2024, while production remains largely in line with last year. The company also reported continued positive progress in its cashew operation, and expects to achieve its first-ever EBITDA-positive performance in 2025.