Dekel shares rise on "strong" palm oil and cashew performances

(Alliance News) - Dekel Agri-Vision PLC on Monday announced a "strong start" for its Ayenouan ...

Alliance News 10 March, 2025 | 11:29AM
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(Alliance News) - Dekel Agri-Vision PLC on Monday announced a "strong start" for its Ayenouan palm oil project, and "continued positive progress" for its cashew processing plant.

The stock surged by 16% to 1.30 pence in London late on Monday morning.

"The [Ayenouan palm oil project] has continued its strong start to 2025, with crude palm oil ('CPO') sales prices continuing to be significantly higher, while production remains largely in line with last year," the West Africa-focused agriculture company said.

It added: "Overall revenue for February 2025 is expected to be over 70% higher than February 2024."

At Ayenouan, Dekel's palm oil operation in Cote d'Ivoire, the CPO sales volume increased 29% on-year in February to 3,177 tonnes from 2,472 tonnes. This was "driven by strong sales demand...resulting in a larger than typical amount of production being sold".

The CPO sales price rose 25% to EUR950 per tonne from EUR759, "reflecting continued strength in international CPO prices".

However, CPO production decreased 5.7% to 3,527 tonnes from 3,742 tonnes - although the "high season appeared to commence mid-month with a notable increase in production in the last few days of February".

Now, Dekel said, "the high season is heading towards its peak" and production is therefore expected to continue rising, with international CPO prices "remaining near historical highs".

The amount of fresh fruit bunches (FFB) processed, the firm reported, decreased 6.8% to 16,125 tonnes from 17,294 tonnes.

Palm kernel oil production rose 4.3% to 217 tonnes, while sales more than doubled to 299 tonnes. The average PKO price rose 54% to EUR1,189 from EUR770 per tonne.

As for the operational performance of the cashew processing plant at Tiebissou in Cote d'Ivoire, Dekel said the "recent positive trend...has continued compared to 2024".

Dekel expects production to increase in 2025, and has therefore "commenced the process of procuring an initial 2,500tn of raw cashew nut ('RCN') with further purchasing planned in the coming months".

"We continue our guidance that we expect to report significantly improved results, including achieving our first-ever [earnings before interest, tax, depreciation and amortisation]-positive performance in the year ahead," Dekel added.

By Emma Curzon, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Dekel Agri-Vision PLC 1.20 GBX 6.67 -

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