Dekeloil Live Discussion

gretel 09 Apr 2017

Tipped in today's Mail on Sunday so should get a well-deserved boost - with the Q1 figures this week also promising to be very good:[link] UPDATE: Golden palms... Palm oil producer offers healthy future for investors as well as Orang-utansHolly Black, Investment Reporter For The Daily Mail Published: 232, 8 April 2017 | Updated: 232, 8 April 2017Palm oil has a dreadful reputation, with its production often devastating rain forests and threatening the habitat of orang-utans.DekelOil aims to be different. Most criticism is levelled at producers in Indonesia and Malaysia, where orang-utans live. Dekel operates in West Africa’s Ivory Coast.And many plantation owners are accused of mistreating local farmers. Dekel works with them to improve living standards.Midas last looked at the company in December 2015, when the shares were 1.175p. In June 2016, a one-for-ten share consolidation programme was launched. Shareholders received one new share in place of every ten held. Had that been in place in 2015, the price would have been 11.75p. Today it is 7.5 per cent higher at 12.65p.The price has yo-yoed recently but the future bodes well for both the firm and its shareholders. Last year was tough for the sector.The price of crude palm oil was at its lowest in more than a decade, and Nigeria’s currency plunged, cutting demand for imports. This hit Dekel, as it sells most of its oil in West Africa.contrast, 2017 has begun on a much brighter note for the industry, and Dekel has undertaken a number of measures to strengthen its business and boost production.Last year, despite tough circumstances, Dekel’s sales rose by 12 per cent to just over €12 million (£10 million). The company reports in euros because the Ivory Coast’s currency is pegged to the euro.The firm also raised production by 9 per cent to 39,000 tons and should deliver even higher production increases this year. Analysts forecast production will hit 45,000 tons in 2017, rising again in 2018.Higher prices and higher production bode well. In 2016, the average palm oil price was €565 a ton. Today, it’s nearer €718 a ton and is expected to remain above €700 a ton at least until the end of the year. The firm underwent a financial restructuring last year – buying out a minority partner, refinancing bank debt on better terms and paying a maiden dividend. The exercise simplified finances and encouraged big investors.Dekel is expected to release first quarter production and revenue figures this week, and these should make for encouraging reading. Profit for 2016 will be revealed in late April or early May, and analysts expect €2.6 million with a 0.17p dividend. In 2017, profits are expected to soar to €6.5 million, boosted by increased production and higher prices. Further strong growth is pencilled in for 2018 too, with rising dividend payments.Dekel is run differently from most palm oil producers. Less than 10 per cent of its output comes from its own estate. The rest comes from local smallholders. It owns a nursery, where it grows palm seedlings. Small trees are then sold to local farmers to plant and nurture. They then sell the bunches of fruit back to Dekel, which turns them into crude palm oil in a modern mill.This provides a secure livelihood for thousands of smallholders, and Dekel has furnished the local village with a school, medical centre and fresh water. The project even caught the attention of the World Bank, which now subsidises smallholders to buy seedlings from Dekel, boosting production.Dekel’s mill has the capacity to produce more than 65,000 tons of oil a year, and there is room for growth on the current plantation. But boss Lincoln Moore is ambitious, and plans a second plantation, again near the economic capital Abidjan, and a third in Ghana.Palm oil is a basic cooking oil in West Af

totalnew 05 Apr 2017

Re: independent tip 0.3c is 50% more than most predictions I have seen ... 0.2c seems to be the norm. I hope you are right!

one4all 05 Apr 2017

Re: independent tip badly researched piece from the paper. it is already known that revenue will be 26mill euro which is not a huge rise from last year due to smaller harvest in second half of year and depressed CPO price for that period although it has risen a lot since then. and we already know there will be dividends they have already told us that.. is this peice written by a snot nose studentQ1 results out tomorrow. y/e statement out in 3 weeks. expect profit of 3.3 mill euros. dividend od 0.3 cents

here and now 04 Apr 2017

independent tip Dowgate Capital – April Stock PicksPage | 3NEW SMALL CAP IDEAS DekelOilPrice: 11.9pMarket Cap: £35.5mTicker: DKL.LMarket: AIMSector: Food ProducersWe anticipate DekelOil will shortly issue a quarterly production and sales update from its expanding and profit generating palm oil operations in Côte d’Ivoire, West Africa. With current Crude Palm Oil (CPO) sales prices being much stronger than at this stage last year we would expect to see material sales revenue growth compared to Q1 2016. The FY results to 31 December are also expected to be announced in the next 6-8 weeks. This will hopefully provide confirmation of DekelOil joining that small and exclusive AIM club of yielding shares with the payment of a maiden dividend. Management highlighted recently (Feb ’17) that FY16 results are “anticipated to increase materially compared to FY15 revenue of €23m and EBITDA of €3.1m.”DekelOil is a vertically integrated palm oil producer, owning a production mill that enables independent smallholders to process their harvested produce (Fresh Fruit Bunches) into crude palm oil, along with plantation land developed by the Group itself that is now reaching maturity.House Broker Cantor Fitzgerald estimate a dividend of 0.17p (0.2c) per share for ’16 FY, which equates to a 1.4% yield at the current mid-market price, which would be covered by x5, based upon an eps forecast of 0.85p (1.0c) for ’16. Ahead a progressive dividend policy is envisaged, with the Group benefiting from an extremely favourable 13-year corporate tax holiday in Côte d’Ivoire. The PE ratings looks very undemanding for a Group still in a growth phase, at an estimated x14.0 for ’16, dropping to x6.3 for ’17 using Cantor Fitzgerald’s projections.The market background remains strong, with CPO prices up by around 20% over the last 12-months and near 3-year highs. Further out in the mid to long term, there is the prospect of DekelOil attracting takeover interest and thereby going a similar route to that taken by MP Evans and New Britain Palm Oil in recent years. We recommend DekelOil as our dual AIM growth and yield play.

Zilladog 18 Mar 2017

Palm oil price Hi Gretel,Just wondering why the Palm oil price seems to have dipped in past month or two? Is it cyclical in nature through seasonal influences or is it purely to do with worldwide supply/demand? Presumably the two are heavily inter-related anyway. I still rate this share as having some considerable potential for a variety of reasons, not least because of potential t/o or jv. Also like the progressive expansionist policies pursued by the management team.Anyway, good luck to all holders Z dog

The Gold-Digger 17 Mar 2017

Waiting to explode At some point this is going to shoot up in price. The fundamentals are just too good.The only thing holding back the price is politics associated with current owners nationality. It won't be long before these factors are overcome and this becomes a target of one of the major Asian palm oil producers

gretel 17 Mar 2017

Ticking up again Good to see a 30k buy cause a nice positive turnaround this morning after some pretty chunky trades yesterday.Worth noting the current forecasts: last year : 0.88p EPS, 0.18p dividend this year : 1.94p EPS, 0.19p dividendPretty cheap against a 12.75p share price.

kevyd33 15 Mar 2017

Re: Good summary I felt confident enough to top-up recently too! There is a positive story here which continues to develop. I will continue to invest when funds allow. I am mindful however that things can change quickly with AIM co's so will maintain due diligence going forward all be it with hopeful confidence. KD££

gretel 15 Mar 2017

Good summary from hereandnow on another bb this week (hope he doesn't mind me copying)...."Ludicrously cheapI have been topping up here the past few weeks. So cheap. They have achieved all of their corporate goals last year. Debt refinanced, partner bought out, investment in production efficiencies, first dividend offered. January stated to be showing good production, CPO prices 20/30% higher than a year ago. Company heading for EBITDA of @8/9 million this year, no tax….if you put the company on a modest PE of 10, we should be a £60/70 million MC company and a share price north of 20p. Market will catch up one day…And as a bonus, easy expansion available and planned in financed from profits, acquisitions being considered as are special dividends. DKL is an M&A target and is close to gaining RSPO certification"

darkanddangerous 23 Feb 2017

new to DKL Hi, fairly novice investor here looking for exposure to palm oil. In this morning, content to sit back for the medium term, and dip in and out for the long term. I do think this share has the potential to get back to 14-16p in very short order.

gretel 20 Feb 2017

Northland Securities article CPO prices remain high at $795.Meanwhile, here's a nice summary of DKL from Northland Securities' February markets summary just out:[link] plants seed for dividend growthOil-palm plantationsDividendOil-palm plantations operator DekelOil is paying a maiden dividend following its move into profit in 2016. A distribution of £500,000 is promised, which is equivalent to 0.17p a share. That should be covered around five times by earnings per share. There is a scrip alternative and some of the directors are going to take part of the payment in shares so the final cash outflow may be lower. The plan is to have a progressive dividend policy.Earnings per share are expected to more than double in 2017 but dividend growth is more likely to be around 10%.DekelOil is able to pay a dividend because the outstanding capital notes were converted into 12.6 million shares at 13.25p each – a 10% premium to the then market price in January. These capital notes were issued in 2010, prior to the company’s flotation in 2013.BusinessWhen DekelOil joined AIM less than four years ago it raised money at 1p a share (10p a share after a subsequent ten-for-one share consolidation). DekelOil owned 51% of the Ayenouan palm-oil project near the coast of Côte d’Ivoire and its partner Siva Group had invested €8.3m in the project. The joint venture company held rights over additional land in the Guitry region of Côte d’Ivoire.The plan was to build a crude-palmoil extraction mill with an intended capacity of 70,000 tonnes a year and construction was completed at the end of 2013. In 2014, the national government granted 100% exemption from corporation tax for profit generated from the mill up until the end of 2026. A kernel-crushing plant was subsequently added.Over the past year, DekelOil has taken its stake in the joint venture to 100%. In 2016, revenues increased by 12% to €26.1m. Crude-palm-oil sales improved from 35,573 tonnes to 39,498 tonnes but the average price fell by 5% to €575/tonne. However, prices have been rising and they reached €700/tonne at the end of2016. The kernel-crushing plant is producing higher volumes than expected. Net debt is estimated at €19.6m at the end of 2016, falling to €17.1m at the end of 2017. Lower capital expenditure should mean a sharper reduction in debt in subsequent years.DekelOil broke even in 2015 and it is expected to make a 2016 pre-tax profit of €2.6m, although this is much lower than originally expected because of poor weather later in the year. The dividend announcement suggests that management is confident that the plantation’s performance will continue to improve. The 2017 pre-tax profit forecast has been reduced from €7.9m to €6.5m. The shares are trading on seven times prospective, non-taxed 2017 earnings, although the multiple does depend on the euro/pound exchange rate. DekelOil has made impressive progress over a four-year period and there is more growth to come."

gretel 02 Feb 2017

New investment overview Reads well:[link]

gretel 18 Jan 2017

Beaufort: still a Buy, 23p target Beaufort Securities, with a 23p price target, say DKL are a Buy on a P/E of just 7.3 this year and 5.4 next year:"Our view: DekelOil is delivering on its promises. Joining the dividend list is a major achievement for any company, let alone one that only came to market in 2013 with the vision to provide a much-needed outlet for fresh fruit bunches grown by thousands of local smallholders by building one of West Africa's largest crude palm oil extraction mills. With its state of the art site entering its fourth year of operations, the Group’s balance sheet is now more reflective of the profitable palm oil producer it is today.Having recently confirmed a 100% interest in Ayenouan, it has a cash generative platform in place that can fund not only regular dividends, but also its future expansion plans both at Ayenouan and elsewhere. Such news is transforming non-believers who often remain sceptical of African agri operations, while also discounting the significance of yesterday’s disappointing sales volumes during Q4’2016. During this period, a 25% decline in gathered FFBs, knocked production by 19% and sales by 50%. Recovery from such a seasonal aberration is already underway, however, with average local CPO prices spiking back to around €700/tonne which should repair much of the damage inflicted. Volumes, pricing and extraction levels for the kernel oil crushing plant also remain ahead of management expectations. All-in-all the overall message for shareholders must be that they cannot discount some form of annual production interruption, to the extent that it is prudent for Beaufort to trim back its most ambitious revenue and profit expectations, until activity levels are seen to regularise.The shares nevertheless still remain much too chap for what DekelOil now appears capable of delivering. Based on a 0.17p/share dividend, the equity yielded 1.4% for FY2016, which rises to an estimated 1.7% this year. Based on a reduced 2017E revenues of £35.0m, followed by £38m in 2018E, the shares presently trade on earnings multiples of just 7.3x and 5.4x respectively. The shares remain on Beaufort’s Buy list."

gretel 17 Jan 2017

Good update, Cantor repeat 29p target Cantor Fitzgerald reiterate their Buy and 29p target:[link] update overall today - the maiden dividend for 2016 is a very pleasant surprise.Lower Q4 production should improve from now on, and in particular CPO - and PKO - prices are confirmed as way ahead in late 2016 and so far this year.The conclusion to the dividend RNS is extremely positive and exciting:"DekelOil Executive Director Lincoln Moore said, "Joining the dividend list is a major achievement for any company, let alone one that only came to market in 2013 with the vision to provide a much-needed outlet for fresh fruit bunches grown by thousands of local smallholders by building one of West Africa's largest crude palm oil extraction mills. With our state of the art mill entering its fourth year of operations, our balance sheet is now more reflective of the profitable palm oil producer we are today. Having recently confirmed a 100% interest in Ayenouan, we have a proven cash flow generative platform in place that can fund not only regular dividends, but also our future expansion plans at both Ayenouan and elsewhere. This is an exciting period for DekelOil shareholders and I look forward to providing further updates on our progress."

malkis 17 Jan 2017

Have [email protected] .......................... for l/t hold and happy as already in the blue here from previous buys.Forward looking co. to aim to pay divis so soon. G L A. Warm Regards Malkis