10th May 2022 10:42
(Alliance News) - Dekel Agri-Vision PLC shares tumbled on Tuesday after the company warned of continued crude palm oil production weakness in April.
Dekel shares were 14% lower at 3.88 pence each in London on Tuesday morning. Since first warning on palm oil production volumes in March, shares have fallen by 38%.
The African agriculture company said production from its Ayenouan palm oil project in Ivory Coast has "continued to remain weak, in line with guidance".
Dekel said that "low recent rainfall" has delayed the typical ripening timing of fresh fruit bunches. However, the company's soil management and crop production expert is "cautiously optimistic" that some of the shortfall in monthly fresh fruit bunches could be improved over the next two months, amid predicted increases in rainfall.
CPO production in April was 42% lower year-on-year at 2,965 tonnes, from 5,147 tonnes. Processed fresh fruit bunches were down 45% to 13,168 tonnes from 24,010 tonnes.
CPO sales volumes fell 64% to 1,788 tonnes in April 2022 from 4,971 tonnes a year prior.
Positively, however, palm oil prices improved. The average CPO price per tonne was EUR1,061 in April, up 32% from EUR803 a year earlier.
"Overall, despite the weak FFB volumes, the company is delivering a strong year-to-date financial performance driven by high CPO and palm kernel oil prices, in addition to the relatively greater extraction rate compared to prior year," Dekel said.
By Eric Cunha; [email protected]
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