FERONIA INC. REPORTS Q2 2015 RESULTS
For immediate release
FERONIA INC. REPORTS Q2 2015 RESULTS
TORONTO, ONTARIO – August 28, 2015: Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) today released its financial results for the three and six months ended June 30, 2015. All amounts in this release are expressed in US dollars unless otherwise indicated.
Q2 2015 Highlights
- Produced 23,350 tonnes of fruit (Q2 2014: 20,083 tonnes), a year-over-year increase of 16.3%
- Produced 4,534 tonnes of Crude Palm Oil (“CPO”) (Q2 2014: 3,660 tonnes), a year-over-year increase of 23.9%
- Fresh fruit bunch (“FFB”) yield of 2.14 tonnes per mature hectare (“ha”) (Q2 2014: 2.09 tonnes per mature ha)
- Oil extraction rate (“OER”) of 19.4% (Q2 2014: 18.2%)
- Revenue of $3.5 million (Q2 2014: $4.0 million) primarily from the sale of:
- 4,004 tonnes of CPO at an average price of $787 per tonne (Q2 2014: 4,195 tonnes at $814 per tonne)
- PKO sales of $210,000 (Q2 2014: $360,000)
- Net loss of $3,088,000 or $0.06 per share (Q2 2014: net loss of $4,866,000 or ($0.09) per share)
- Entered into subscription agreements for private placement of up to US$9.18 million secured convertible debentures with CDC and the African Agriculture Fund (“AAF”) and amended the terms of the January 2015 Debentures
- Agreement signed for the purchase, installation & commissioning of a BioCube1 biodiesel generator at Yaligimba
Xavier de Carnière, Chief Executive Officer of Feronia Inc. commented:
“Since 2014, global commodity prices have largely been in decline. Oil prices are down 60%, copper and soya 30%, sugar 39%, coffee 20% and pork 50%. Palm oil is no exception with global prices down by approximately 50% in this period with prices now at their lowest level since the beginning of the last up-cycle in early 2009.
“Whilst the DRC palm oil market is slightly insulated from global price fluctuations, an influx of cheap imports from Angola due to the deterioration of Angola's currency has caused pricing pressure in the DRC. Additionally, as an organisation, we have faced tighter access to capital markets, political uncertainty surrounding upcoming elections and a number of other factors; all of which would discourage many.
“However, in these rough seas, we have continued to make considerable progress operationally. Our KPIs continue to improve, we have diversified our customer base by entering into sales contracts with two new refiners, we have made significant progress towards energy independence through the advancement of our fiber boiler project and we have made a strategic decision to advance a biofuel generation project which will provide extra diversification and, combined with our fiber boiler project, substantially reduce our dependence on high carbon footprint imported fossil fuels. At the same time we have progressed our Environmental and Social Action Plan and are seeing measurable positive changes on the ground.
"The progress we are making is down to the hard work and unwavering and precious dedication of our staff, management and two largest shareholders and I am confident that we will succeed in our collective aim of re-establishing a sustainable, profitable enterprise which has environmental and social best practices at its core.”
For further information please contact:
Xavier de Carniere
Chief Executive Officer, Feronia Inc.
44 (0)7468 697 658
Investor Relations Manager, Feronia Inc.
44 (0)7554 521421
About Feronia Inc.
- Feronia is an agribusiness operating in the Democratic Republic of the Congo (DRC).
- At the heart of Feronia lies a long established palm oil business, Plantations et Huileries du Congo (PHC), which has three remotely located plantations; Lokutu, Yaligimba and Boteka. We also have an arable farming operation which grows and processes rice.
- When Feronia acquired its palm oil business from Unilever in 2009, it had suffered from years of underinvestment and considerable disruption caused by conflict in the DRC. Our initial focus has been on rebuilding the business and resuming production to secure its future and the livelihoods of the 3,800+ people we directly and indirectly employ.
- Feronia’s plantations produce crude palm oil (CPO) and palm kernel oil (PKO). CPO is part of the staple and traditional diet of the Congolese and, with our products sold locally in the DRC, we are well placed to help decrease reliance on imports and increase food security and quality.
- Feronia prides itself on being the guardian of our 104 year-old palm oil business and its employees, communities, and environment. We have a long term commitment to improve the living and working environment of our employees and their communities and are committed to sustainable agriculture, environmental protection and community inclusion.
- Feronia has in place an Environmental and Social Action Plan which is focused on implementing environmental and social best practice and improving social infrastructure.Feronia is working towards certification by the Roundtable for Sustainable Palm Oil (RSPO) and is implementing IFC/World Bank standards for environmental and social sustainability. Our oil palm replanting programme is brownfield in nature – replacing old palms with new – and it has no reliance on deforestation.
- Feronia’s management team is comprised of senior agriculturalists with extensive experience in managing both plantations and farming operations in emerging markets.
- For more information please see www.feronia.com
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the “Loi Portant Principes Fondamentaux Relatifs A L’Agriculture”, termination or non-renewal of concession rights or expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, lack of infrastructure in the DRC, high inflation rates, limited availability of debt financing in the DRC, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), the Company’s reliance on one major customer, lower productivity at the Company’s plantations and arable farming operations, risks related to the agricultural industry (including adverse weather conditions, shifting weather patterns, and crop failure due to infestations), a shift in commodity trends and demands, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Feronia and its business are discussed under the heading “Risks and Uncertainties” in Feronia’s Management’s discussion and Analysis for the year ended December 31, 2014, a copy of which is available on the Company’s SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.