8th Nov 2006 07:00
D1 Oils Plc08 November 2006 Press Release D1 Oils Q3 2006 Business Update 8 November, 2006 D1 Oils plc (D1), the UK-based global producer of biodiesel, announces itsquarterly business update for the third quarter ended 30 September 2006. Agronomy Up to 30 September 2006, together with our joint venture partners, D1 hasplanted or obtained the rights to offtake from plantings of a total of 114,313hectares of jatropha worldwide. This represents an increase of 46,103 hectares(67.5%) on the total planting of 68,210 hectares up to 30 June, as announced on1 August, and an increase of 4,942 hectares (4.5%) on the total planting of109,371 hectares up to 15 September, as announced on 27 September. The totalexceeds internal targets. The increase in the planting for the last two weeks ofSeptember is accounted for by planting undertaken by seed and oil supplypartners in India, no planting having taken place during this time in South EastAsia due to regional holidays. The bulk of the increase in planting for the quarter is accounted for byoperations in South East Asia, primarily in China and Indonesia, and in India,where our joint venture with Williamson Magor has planted over 8,300 hectares. The cumulative position at 30 September 2006 is summarised in the table below: Managed Contract Seed purchase and Total plantations farming oil supply agreements India - 12,740 31,361 44,101 Southern 5,155 - 2,000 7,155Africa South - 30,494 32,563 63,057EastAsia Total 5,155 43,234 65,924 114,313 Managed plantations are those farms where the land and labour is directlycontrolled by D1. In contract farming undertaken with joint venture partners,individual farmers purchase seed and seedlings from and enter into offtakeagreements with D1. Trees are planted on the farmers' own land. Seed purchaseand oil supply agreements represent offtake contracts over existing jatrophaplanting. Refining D1 currently has 32,000 tonnes of operating refining capacity in Middlesbrough.The Board plans to expand UK production capacity to 320,000 tonnes by the end of2007 and 420,000 tonnes by the end of 2008, using both modular technologies,including its new 10,000 tonne D1 20 and planned 50,000 tonne units, and byconverting existing facilities to biodiesel production. This significantexpansion will be made possible in large part by our proposed acquisition of anew refining and distribution site at Bromborough in Merseyside. Completion ofthe site purchase is anticipated by year end. Trading D1 has concluded its first major UK offtake contract for biodiesel. The contractcovers the sale of approximately 24,000 tonnes of biodiesel over a twelve monthperiod to Petroplus Refining Teesside Limited, a division of Petroplus, the UK'slargest independent refiner of crude oil and distributor of petroleum products.The first delivery of product to Petroplus was made on 26 October. Furtheragreements with other parties to sell the balance of current production are innegotiation. At present, D1 is predominantly processing soya oil sourced from Latin Americato supply Petroplus and to supply other intended contracts that are presently innegotiation. D1 expects the Petroplus supply contract to continue to beprofitable over the remainder of its term assuming that applicable exchangerates and the inter-relationship between commodity prices follow historicaltrends. As previously indicated, D1 anticipates that jatropha will becomeavailable in material quantities from 2008 at a significant cost advantagecompared to the prevailing market values of other feedstock options. Prior tothis, the company's strategy is to produce and sell biodiesel sourced from othervegetable oils to provide cash flow for the business. Elliott Mannis, Chief Executive Officer of D1 Oils, commented: "Our latest planting figures are a measure of the significant progress indelivering on our business plan. The pace of planting is ahead of our internalexpectations, and we are pleased to have expanded planting into new areas suchas China. All four of our Middlesbrough refineries are now in beneficialoperation and producing biodiesel for sale. We are increasing our refinerycapacity in the UK, and the scheduled acquisition of the Bromborough site is asignal of our intent to deliver on our vision to create a leading biodieselbusiness. Our first major UK offtake contract for biodiesel sales to Petroplusis a further demonstration of our progress. We aim to conclude furtheragreements in due course to sell the balance of production of the Teessidesite." Contacts: D1 Oils: Graham Prince, Head of Corporate Communications Tel: +44 (0) 1642 755580 Mobile: +44 (0) 7973 323840 Brunswick Group: Mark Antelme Tel: +44 (0) 20 7404 5959 Notes to Editors D1 Oils plc is a UK-based global producer of biodiesel. We are building a globalsupply chain and network that is sustainable and delivers value from'earth-to-engine'. Our operations cover agronomy, refining and trading. We arepioneering the science, planting and production of inedible vegetable oils; wedesign, build, own, operate and market biodiesel refineries; and we source,transport and trade seeds and seedlings, seedcake, crude vegetable oils andbiodiesel. Our vision is to be the world's leading biodiesel business. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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