Click here to close now.

SYS-CON MEDIA Authors: Ian Goldsmith, Ed Featherston, Elizabeth White, Pat Romanski, Liz McMillan

News Feed Item

Feronia Inc. Reports Q2 2014 Results

TORONTO, ONTARIO -- (Marketwired) -- 08/29/14 -- Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) today released its unaudited financial results for the three and six months ended June 30, 2014. All amounts in this release are expressed in US dollars unless otherwise indicated.

Q2 2014 Highlights


--  Produced a company record 3,660 tonnes of Crude Palm Oil ("CPO") (Q2
    2013: 2,913 tonnes) from 20,083 tonnes of fruit (Q2 2013: 15,544
    tonnes), a year-over-year increase of 26% 
--  Company record revenue of $4.0 million (Q2 2013: $2.2 million) including
    from the sale of: 
    --  4,368 tonnes of CPO at an average price of $787 per tonne (Q2 2013:
        2,236 tonnes at $778 per tonne) 
    --  289 tonnes of Palm Kernel Oil ("PKO") at an average price of $897
        per tonne (Q2 2013: nil)
--  Replanted 1,561 hectares ("ha") of oil palm (Q2 2013: 2,030 ha) 
--  Oil extraction rate (excluding Yaligimba) of 18.435% (Q2 2013: 18.74%) 
--  Fresh fruit bunch ("FFB") yield (excluding Yaligimba) of 2.5 tonnes per
    ha (Q2 2013: 2.6 tonnes per ha) 
--  FFB yield of 1.4 tonnes per ha at Yaligimba 
--  Production levels at Yaligimba increasing as planted hectare
    rehabilitation (including extensive weeding programme) progresses 
--  Harvested 238 tonnes of paddy rice that was planted in March/April 2014
    and achieved yields of 1.26 tonnes per hectare 
--  Net loss attributable to Feronia was $(3.6m) or $(0.07) per share,
    compared to a loss of $(2.2m) or $(0.8) per share in Q2 2013

Subsequent Events


--  3,150 ha of oil palm has been replanted in the year to date as at August
    23, 2014

Discussion

For the six months ended June 30, 2014 the Company produced 35,489 tonnes of FFB and 6,511 tonnes of CPO, representing increases on the corresponding period in 2013 of 41% and 39% respectively. The majority of the increase relates to contribution from Yaligimba plantation where there was no production until Q4, 2013.

The rehabilitation of Yaligimba, which includes extensive weeding of mature hectares, and the re-configuration of staffing to reflect the plantation's return to production, continues. Production levels at Yaligimba are currently below those at Lokutu, however, the Company expects operating results at both plantations to be similar over time.

The Company realised lower FFB yields for the six months ended June 30, 2014 (3.69 tonnes/Ha) than during the six months ended June 30, 2013 (4.22 tonnes/Ha). Several factors contributed to this decline:


i.  Ongoing access issues related to the rehabilitation of Yaligimba
    plantation prevented the harvest of all fruit resulting in a very low
    FFB-yield at Yaligimba, not representative of the actual agronomic yield
    or the long-term potential yield. Additional resources have been
    allocated to the rehabilitation of Yaligimba and substantial performance
    improvements have been observed and are expected to continue. 
    
ii. Worsening nutrient deficiencies at Boteka Plantation continued to
    negatively impact yields. Fertiliser, ground limestone, and guano are
    being applied to correct the deficiencies and, combined with a normal
    course fertiliser and soil maintenance regime, we anticipate a
    substantial improvement in yields commencing in the quarter ending
    September 30, 2015. 
    
iii.Approximately 10.7% of the palms harvested in the 6-months ended June
    30, 2014 were in their first year of production and therefore low
    yielding. Since minimal fertiliser application was made to immature
    areas, these palms are contributing relatively little production and
    lowering the average on a per hectare basis. Management believes that
    its ongoing fertiliser regime will result in a substantial improvement
    in yields from young palms. 
    
iv. Downtime and capacity limitations at the Lokutu mill constrained harvest
    and therefore realised FFB yields. 

Replanting of oil palms commenced in March 2014 in line with rainfall patterns, with 1,561 ha planted in Q2 2014 (Q2 2013: 2,030 ha) and 1,859 ha replanted as at June 30 2014 (June 30, 2013: 2,452 ha). As at August 23, 2014 the Company had replanted 3,150 ha in the current year and in excess of 14,000 ha since it acquired PHC in 2009. As at August 23, 2014, Feronia's oil palm nurseries contained 579,465 seedlings and were sufficiently stocked to complete the 5,000 hectare replanting programme for 2014.

Ravi Sood, Chairman of Feronia Inc. commented: "We have experienced a variety of challenges related to the rehabilitation of Yaligimba plantation and at the same time, faced normal course issues related to operations at our other two plantations, Lokutu and Boteka. Management has taken action to improve the performance at Yaligimba in the short-term and is continuing to move forward with various initiatives designed at improving the long-term profitability and sustainability of the Company.

"During the second quarter the Company appointed an Environmental and Social Governance Director to manage the implementation of its Environmental and Social Action Plan ("ESAP"). The ESAP is a short-term action plan, funded via a dedicated debt facility, designed to make material improvements and implement processes and procedures that will be ongoing and a vital part of guaranteeing the Company's sustainability.

"The Company has engaged Versa Partners Limited. ("Versa"), a Malaysia-based, leading agri-business consultancy, to assist in the identification and implementation of operational and technical efficiency improvements. Versa has extensive experience in plantation management with a particular expertise on performance improvement. A key objective of the Company's engagement with Versa is to augment long-term training programmes to ensure the ongoing implementation of global best practices."

Mr. Sood concluded: "We continue to grow and drive value through our re-planting programme and ongoing performance improvement initiatives. We expect to complete 2014 with approximately 25,000 ha planted of which approximately 16,000 ha will be immature. While this is not an optimal portfolio from an age perspective for current production, it speaks to the tremendous latent value in our operation and the clear path forward to production and revenue growth. In the short-term we remain focused on delivering performance improvement and making investments in our infrastructure, people and communities that will have substantial long-term returns."

About Feronia Inc.


--  Feronia Inc. is a large-scale commercial farmland and plantation
    operator in the Democratic Republic of the Congo ("DRC"). 
--  The Company uses modern agricultural practices to operate and develop
    its oil palm plantations and arable farming business division. 
--  Feronia believes in the immense agricultural potential of the DRC for
    high-quality foodstuffs and edible oils given its ideal climate,
    excellent soil and highly skilled and experienced workforce. 
--  Feronia's management team is comprised of senior agriculturalists with
    extensive experience in managing both plantations and large-scale
    mechanized farming operations in emerging markets. 
--  Feronia is committed to sustainable agriculture, environmental
    protection and providing support for local communities. 
--  For more information please see www.feronia.com.

Cautionary Notes

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 annual Management's Discussion and Analysis for the year ended December 31, 2013, 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that EnterpriseDB (EDB), the leading worldwide provider of enterprise-class Postgres products and database compatibility solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. EDB is the largest provider of Postgres software and services that provides enterprise-class performance and scalability and the open source freedom to divert budget from more costly traditiona...
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, explored the synergies in these two approaches, with practical tips, techniques, research data, wa...
Enterprises are fast realizing the importance of integrating SaaS/Cloud applications, API and on-premises data and processes, to unleash hidden value. This webinar explores how managers can use a Microservice-centric approach to aggressively tackle the unexpected new integration challenges posed by proliferation of cloud, mobile, social and big data projects. Industry analyst and SOA expert Jason Bloomberg will strip away the hype from microservices, and clearly identify their advantages and d...
Data-intensive companies that strive to gain insights from data using Big Data analytics tools can gain tremendous competitive advantage by deploying data-centric storage. Organizations generate large volumes of data, the vast majority of which is unstructured. As the volume and velocity of this unstructured data increases, the costs, risks and usability challenges associated with managing the unstructured data (regardless of file type, size or device) increases simultaneously, including end-to-...
If cloud computing benefits are so clear, why have so few enterprises migrated their mission-critical apps? The answer is often inertia and FUD. No one ever got fired for not moving to the cloud - not yet. In his session at 15th Cloud Expo, Michael Hoch, SVP, Cloud Advisory Service at Virtustream, discussed the six key steps to justify and execute your MCA cloud migration.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud en...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Can the spatial component of your Big Data be harnessed and visualized, adding another dimension of power and analytics to your data? In his session at Big Data Expo®, John Meza, Product Engineer and Performance Engineering Team Lead at Esri, discussed the spatial queries that can be used within the Hadoop ecosystem and their integration with GeoSpatial applications. The GIS Tools for Hadoop project was also discussed and its implementation to discover location-based patterns and relationships...
“We are strong believers in the DevOps movement and our staff has been doing DevOps for large enterprise environments for a number of years. The solution that we build is intended to allow DevOps teams to do security at the speed of DevOps," explained Justin Lundy, Founder & CTO of Evident.io, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Announced separately, New Relic is joining the Cloud Foundry Foundation to continue the support of customers and partners investing in this leading PaaS. As a member, New Relic is contributing the New Relic tile, service broker and build pack with the goal of easing the development of applications on Cloud Foundry and enabling the success of these applications without dedicated monitoring infrastructure. Supporting Quotes "The proliferation of microservices and new technologies like Docker ha...
Even though it’s now Microservices Journal, long-time fans of SOA World Magazine can take comfort in the fact that the URL – soa.sys-con.com – remains unchanged. And that’s no mistake, as microservices are really nothing more than a new and improved take on the Service-Oriented Architecture (SOA) best practices we struggled to hammer out over the last decade. Skeptics, however, might say that this change is nothing more than an exercise in buzzword-hopping. SOA is passé, and now that people are ...
You often hear the two titles of "DevOps" and "Immutable Infrastructure" used independently. In his session at DevOps Summit, John Willis, Technical Evangelist for Docker, will cover the union between the two topics and why this is important. He will cover an overview of Immutable Infrastructure then show how an Immutable Continuous Delivery pipeline can be applied as a best practice for "DevOps." He will end the session with some interesting case study examples.
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...