16th Sep 2014 10:08
LONDON (Alliance News) - DekelOil Public Ltd Tuesday said it narrowed its losses in the first half of 2014, driven by strong revenue growth, as its new 60 tonne per hour extraction mill at the Ayenouan project in West Africa became operational.
The palm oil development company with interests in Ivory Coast posted a pretax loss of EUR761,000 for the half-year ended June 30, compared with a EUR1.1 million loss in the first half of 2013.
Dekeloil generated EUR4.5 million in revenue during the period, up from EUR201,000 a year before, boosted by the commissioning of its first 70,000 tonne per year extraction mill.
It said production for the first half of operations to June 30 stood at 7,932 tonnes of crude palm oil and 1,311 tonnes of kernels.
The company said it is "strongly placed" for further growth.
"Considering that the mill was only operational for four months of this half year period, we are very pleased with the revenue and EBITDA reported and we look forward to building on this," said Executive Director Lincoln Moore in a statement.
"We have a defined growth strategy focussed on increasing our production and planted land position. We are operating in a highly dynamic sector, and look forward to maximising our value in the coming months and beyond," Morre added.
Dekeloil said that with the mill operating well and fresh fruit bunches supply increasing, it is confident that its production in 2015 will grow substantially. Fresh fruit bunches are the raw material pressed to produce palm oil.
The company said it has now signed two further off-take agreements with domestic customers, bringing the total to three, in line with its strategy to secure a diversified, local sales book.
Dekeloil shares were trading 1.7% higher at 1.50 pence late morning Tuesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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