24th Jun 2015 09:03
LONDON (Alliance News) - DekelOil Public Ltd Wednesday said it expects to report its first "meaningful full-year profits" in 2015, as crude palm oil production in the first four months of 2015 has surpassed its total production for 2014, and it posted a widened pretax loss for 2014.
DekelOil operates and owns 51% of the Ayenouan palm oil project in Ivory Coast.
The company posted a pretax loss of EUR2.6 million for 2014, widened from a pretax loss of EUR1.5 million in 2013, despite revenue rising to EUR9.97 million from EUR465,000, as a result of higher cost of sales and a finance cost of EUR2.2 million related to interest on loans and capital notes.
Between the beginning of March 2014 and the end of 2014 the company produced 14,242 tonnes of crude palm oil and 2,504 tonnes of kernels. Whilst this was slightly below DekelOil's expectations, it implemented measures that have had a positive effect in the beginning of 2015, and the company said it is "on a path to dramatically lift production in 2015".
The company said it reached a record monthly production of 4,818 tonnes in April 2015. It has signed a contract for the construction and commissioning of a kernel crushing plant to add another revenue stream, and expects this to be operational at Ayenouan in the fourth quarter of 2015.
"In line with management expectations, we expect to report significant growth in terms of production and revenues, and to report our first meaningful full-year profits in 2015, as we use the excellent platform we have put in place to build a leading West African focused palm oil producer," said Executive Director Lincoln Moore in a statement.
Shares in DekelOil are trading up 0.4% at 1.15 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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