16th Apr 2014 08:28
LONDON (Alliance News) - Dekeloil PLC Wednesday said its recently commissioned Crude Palm Oil extraction Mill in Sierra Leone has achieved operating profitability in its first full month of operation and its gross sales margins were at the high end of company estimates.
The palm oil producer said the 60 tonnes per hour mill produced 1,617 tonnes of crude palm oil and 189 tonnes of kernels during March after the plant started production towards the end of February.
The company said CPO production was extracted at a rate of 21% from 7,891 tonnes of fresh fruit bunches while sales of palm oil started on March 19 and sales of kernels commenced on March 20.
Dekeloil said 594 tonnes of CPO were sold at an average sale price of USD882 per tonne and 146 tonnes of kernel were sold at USD278 per tonne during the period.
The company said the estimated gross margin of 27-29% was at the high end of estimates and Dekeloil was overall earnings before interest, taxations, depreciation and amortisation positive in its first month of operations.
"Its just a matter of time before we achieve full production," Executive Director Lincoln Moore told Alliance News in March. "Our focus in the next few months is getting as much fruit as possible to the mill and steps to speed up this process are producing positive results."
The company is currently in its high season and improvements in production will help it during its low season between July and September.
Dekeloil shares were up 9.84% to 1.67 pence, putting it in the top four AIM risers in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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