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Dekel Says Palm Oil Prices Recovering After Covid-19 Induced Fall

26th Jun 2020 12:56

(Alliance News) - Dekel Agri-Vision PLC on Friday said its palm oil sales volumes rose in 2019, though the price of the commodity slipped and fell again due to the Covid-19 pandemic following a December rebound.

The agriculture firm's revenue in 2019 was essentially flat at EUR20.9 million, though its pretax loss widened to EUR3.3 million from EUR3.2 million.

Finance costs were 5.2% higher at EUR1.8 million.

Dekel said its crude palm oil production rose 14% to 37,649 tonnes and sales volumes surged 15% to 37,713 tonnes.

Average realised price was down 9% at EUR491 per tonne, but in December, it rallied to EUR850 per tonne.

Amid the Covid-19 pandemic, the CPO price fell to a low of EUR500 but since has improved to EUR610.

Executive Director Lincoln Moore said: "Set against the backdrop of a second consecutive year of lower global palm oil prices, the company is continuing to navigate its way through what has been a highly challenging trading period for the whole industry.

"We believe the year ahead will serve to demonstrate that Dekel Agri-Vision is both a resilient and a growing business. Resilient because, despite Covid-19 and the associated downturn, we expect the business to report improved financial results."

Dekel shares were 4.3% lower at 2.44 pence each in London on Friday afternoon.

By Eric Cunha; [email protected]

Copyright 2020 Alliance News Limited. All Rights Reserved.


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