Debbre Zeit
11 Oct 2017
Why oh why...? ...did I buy this non mover... ???I cant even remember... oh wait, that tart in the Sunday Mail wrote a good report...hmmmm
gubu
05 Oct 2017
By chance . . . . . . I stumbled across this board, thinking it was a different oil company (Delekoil) which may not even be listed on the LSE.So palm oil production is what these fellows do. Well investment should be fun I suppose, or at least educational(Although we would very much like to make some money too)Supporting commercial agriculture in West Africa cannot be bad, and they seem to know what they are doing, making real hard cash in H1.Niggling doubts might be around high-ish borrowings, being dependent on commodity prices, a management team maybe just a little too impatient to scale up, and of course investing in Africa can be a bit tricky at the best of times.Still worth a little punt and see how it goesWhen the Asian countries get stuck into these commodities they tend to be very efficient producers so I hope we can match them here
gretel
28 Sep 2017
Beaufort also see almost 100% upside Beaufort Securities today retain their 23p target.They forecast 1.77p EPS this year and 2.42p EPS next year - those are P/E's of 6.9 falling to just 5.1....."Our View: Impressive stuff! The first half of 2017 saw DekelOil acquire 100% of Ayenouan, further strengthen its balance sheet, pay out a maiden dividend and report record sales and profits. There is clear momentum behind the business, both at the operational and corporate level and Beaufort expects this to be maintained going forward. Having proven its business plan, management is now keen to roll-out its vertically integrated model, which includes a state of the art nursery, mill, and company-owned estates, elsewhere in the region. At Guitry, operations have already formally commenced and the Board remains in discussions to acquire an interest in Norpalm Ghana Limited ('NGL'), a vertically integrated palm oil producer in Western Ghana which has approximately 4,000 hectares of mature palm plantations under ownership and produces some 15,000 tonnes of CPO a year from a 30t/hr mill. In addition to the revenue it generates from selling this produce into the domestic Ghanaian market, NGL also operates a palm kernel oil press which produces approximately 2,000 tn of PKO. There can be no guarantee current discussions will result in DekelOil acquiring NGL, but they nevertheless demonstrate management's confidence in its ability to replicate success already achieved. Having proven both the operating model and ability to implement it, shareholders should be reasonably confident of further progress as DekelOil seeks to transform itself into a leading West African palm oil producer. Indeed, Beaufort considers DekelOil is capable of producing as much as £2.7m free cashflow during 2017E, followed by around £6m the year after. Importantly also, yesterday's update demonstrates management willingness to move its ambitious planning forward without exposing shareholders to a higher risk profile. Based on 2017E and 2018E revenues estimates of €33.1m and €36.8m, delivering fully-diluted earnings 1.77p and 2.42p respectively, the shares trade on forward multiples of just 6.9x and 5.1x respectively while offering yields of 1.6% and 1.8%. Beaufort retains its Buy recommendation on DekelOil, while repeating its price target of 23p/share."
gretel
27 Sep 2017
Optiva have 30p target : 150% upside Sara789456 has posted this incomplete update from Optiva Securities elsewhere - hope she doesn't mind me copying it.Optiva have adjusted their target price to 30p (from 34p), and see 36.3p with Guitry included - DKL are now on a ridiculous forward P/E of just 4 at 12p:"We believe DekelOil still offers investors a compelling and a deep value investment opportunity; DekelOil trade on a forward FY18 P/E of 4x on double-digit EPS growth. We have adjusted our price to 30p from 34p, and if the Guitry project is successfully implemented, our target price increases to 36.3p.SummaryWe believe DekelOil still offers investors a compelling and a deep value investment opportunity; DekelOil trade on a forward FY18 P/E of 4x on double-digit EPS growth. We have adjusted our price to 30p from 34p, and if the Guitry project is successfully implemented, our target price increases to 36.3p.H1 2017 Summary:� Total CPO Production 26,957 in H1 2017� 22.6% increase in revenues to �19.6m (H1 2016: �16.0m)� 19.4% increase in EBITDA to �3.7m vs (H1 2016: �3.1m)� 33.3% increase in Net Profits to �3.7m (H1 2016: �1.8m)� 0.17p dividend to be paid on 4 September 2017In our view, the management continue to deliver robust revenue, profitability and cash growth despite of the one-off mechanical issues. The issue resulted in a loss of production of about 3.5/4kt of CPO. This was due to blockage in production flow in the kernel processing pipe and equipment failure within the de-oiling tank. These issues have been rectified, but we are taking a conservative view in H2 and FY18, which is reflected in our adjusted forecast shown below.Expansion Projects:The real excitement in the H1 interims comes from the management decision to formally expand into Guitry; a 100% owned second-project based on Cote d�Iviore and interest in Norpalm Ghana Limited, a vertically integrated palm oil producer in Western Ghana.Guitry:Guitry is situated 160km north west of Abidijan, and 240km west from the current project in Ayenouan.DekelOil has the right to develop;� 24,000Ha brownfield land� Establish a plant nursery facility with the capacity to product 1m palm plants per annum� 30 tonnes per hour MillThe management has already ordered nursery equipment, completed the Social & Environmental Impact Assessment and water survey. We anticipate development costs of �200-250k in the next 12 months, which will be funded through the Ayenouan project cash flows.Guitry Economics:The current Ayenounan 60t/h Mill had a capital cost of �15.5m, of which 92% was funded by debt. We will assume the new 30t/h Mill will have a capital cost of approximately �10m and will begin operations in 2020. We also assume that DekelOil will secure 90% debt funding and minority equity partner for 49%, a similar strategy to how they commenced the Ayenounan project in 2013/14. At a CPO price of �500/t we get a conservative project valuation of &#...."
gretel
27 Sep 2017
Cantor Fitzgerald: almost 100% upside Cantor Fitzgerald reiterate their Buy following the results, with a 24p target price:[link] almost 100% upside.The 24p target price moves from 25p, I suspect only due to the slightly increased shares in issue given today's warrant exercise and the Biopalm share conversion at 13.25p.
gretel
27 Sep 2017
The re-rating starts here...great results Terrific results and a bullish outlook today - the current valuation is just far too low. IMO anyway.This will surely spark the re-rating at last:[link] H1 financial performance · Record H1 financial performance due to stronger pricing and the increase in CPO storage capacity from 5,000 to 8,000 tonnes which enabled the Company to sell CPO at a premium to international prices · 22.6% increase in revenues to €19.6 million (H1 2016: €16.0 m) - includes sale of Crude Palm Oil ('CPO'), Palm Kernel Oil ('PKO'), Palm Kernel Cake ('PKC') and Nursery Plants · 19.4% increase in EBITDA to €3.7 million (H1 2016: €3.1 m) · 33.3% increase in net profit after tax to €2.4million (H1 2016: €1.8m) · 26,947 tonnes of CPO produced in H1 2017 (H1 2016: 28,550 tonnes) - record Q1 like-for-like production was followed by lower Q2 CPO volumes due to now rectified mechanical issues.... Maiden final dividend · Progressive dividend policy adopted and final dividend of 0.17p per ordinary share declared and paid on 4 September 2017.... DekelOil Executive Director Lincoln Moore said, "The record first half financial performance, specifically in terms of revenues, EBITDA and net profit, demonstrates how cash generative our 100%-owned palm oil project at Ayenouan is becoming. Not only does it generate funds for additional investment into the project to increase profitability further, such as the new 3,000 tonne storage tank, but also sufficient cash to pay down debt and to fund a progressive dividend policy. "Ayenouan proves our strategy to work closely with local smallholders works for all parties and we are keen to roll-out our vertically integrated model, which includes a state of the art nursery, mill, and company-owned estates, elsewhere in the region. We are already making progress: as announced post period end, operations at Guitry, our second 100%-owned project in Côte d'Ivoire have formally commenced; and we remain in discussions to acquire an interest in Norpalm Ghana Limited, a vertically integrated palm oil producer in Western Ghana which produces approximately 15,000 tonnes of CPO a year from a 30t/hr mill. Becoming a multi-project palm oil producer is key to delivering on our goal to transform DekelOil into a leading palm oil company in West Africa and I look forward to providing further updates on our progress in due course."
gretel
19 Sep 2017
CPO price moving up nicely The CPO price has rocketed up to $742.50 as at last Thursday's close......should be good for the Q3 update to 30th September.
gretel
18 Sep 2017
Positive read-across from MPE MP Evans H1 profits released today have tripled on strong palm oil prices...there should be a decent read across here.They comment firstly:"The palm-oil market Having closed 2016 strongly, with the CPO price (c.i.f. Rotterdam) at US$795 per tonne, prices continued at these levels until the middle of February. Despite very low levels of CPO and vegetable oil stocks worldwide, the anticipated rebound of production following the El Niño of 2015-16 led to an erosion of the price towards US$650 per tonne.The price subsequently stayed at this level, or a little higher, other than for a period during May when it temporarily rallied to around US$750 per tonne. Overall, the average price during the first half of 2017 was US$735 per tonne, appreciably higher than the US$668 recorded for the first half of 2016 and above the average price for the calendar year 2016 of US$700 per tonne. Since June 2017, the CPO price has been in the range US$650-US$750 per tonne."Another paragraph comments that forward CPO pricing looks good:"Since the end of June, CPO largely traded between US$650 and US$700 per tonne, before rising towards US$750 in the middle of September. The price in forward markets suggests this higher level may be maintained for the remainder of the year."In addition, MPE commented very positively about CPO fundamentals as follows:"The board remains confident that the fundamentals of the palm-oil market continue to be encouraging. Vegetable oil is a basic foodstuff and increasing demand from a growing world population looks likely to persist. Palm oil delivers by far the highest yield per hectare of all the vegetable oils and has the lowest cost of production. It is therefore well placed, long term, to benefit from the likely future increase in demand."
gretel
07 Sep 2017
RNS: Miton increase their stake today's RNS shows Miton Group buying more. They had 47.06m shares in February, and now they've added roughly 500,000 shares to go to 47.57m, or above 16%:[link]
avago
05 Sep 2017
Re: MAIDEN DIV PAID Any response in the share price to the dividend will occur when the shares go ex-dividend - on 13th July - and not when it is paid out.
malkis
05 Sep 2017
MAIDEN DIV PAID Divi has ben paid into my account TODAY. This is a well org co that has done well and is heading onwards and upwards ......I was expecting sp to drop after div p/o but seems to be increasing ! Warm regards to all
nev1jol
07 Aug 2017
Re: Norpalm Ghana Thanks gretel I must not have been paying attention when I read the statement, thanks again for the post.
gretel
07 Aug 2017
New interview with CEO A new interview with the CEO not posted here before:[link] He notes: - Ayenouan could be worth in time £100m - Guitry's 50% could be worth fully executed another £100m - DKL are trading at half or less of the multiples of other palm oil companies
gretel
07 Aug 2017
Re: Norpalm Ghana DKL have explicitly stated Norpalm would be funded:"from a combination of DekelOil's existing cash resources, new equity partners at project level and debt financing"So no, there should be no equity fundraising from DKL at all.
nev1jol
04 Aug 2017
Norpalm Ghana does anyone think we will have to raise monies via rights issue to pay for the Norpalm Ghana deal.and could this possibly be why the share price is stuck in a rut.
