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Dekel Agri-Vision (LSE:DKL) delivered a strong performance from
its Ayenouan palm oil project in Côte d’Ivoire during May, with crude palm oil
production increasing 31.9% year on year. The operation also achieved an
improved extraction rate of 22.3%, reflecting enhanced processing efficiency
during the month.
The company said local crude palm oil selling prices remained
robust, although they continued to trade at a discount to elevated
international market levels. Palm kernel oil prices also remained steady,
supporting expectations for a solid first-half performance from the palm oil
division despite the beginning of the sector’s seasonally weaker production period.
At the Tiebissou cashew processing facility, approximately 650
tonnes of raw cashew nuts were processed during May. Management reported stable
sales volumes and pricing, supported by continued demand across its target
markets. The steady performance of the cashew business complemented the strong
results from the palm oil segment and contributed to the group’s diversified
revenue base.
Dekel said the combination of improving palm oil production and
consistent cashew operations provides a solid foundation for future growth as
it continues to expand its agricultural footprint across West Africa. The
company remains focused on developing multiple agribusiness activities to
reduce reliance on a single commodity and strengthen long-term earnings
potential.
While the group’s outlook continues to be influenced by
profitability challenges and weaker technical indicators, management believes
recent operational progress and positive corporate developments offer
encouragement for future improvement. Valuation metrics remain under pressure
due to negative profitability measures, but the company continues to pursue
initiatives aimed at enhancing performance across its core businesses.
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Source: Online/GFMM
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