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


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 Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...
SYS-CON Events announced today that Impiger Technologies will exhibit in Booth #109 at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Impiger Technologies is a world-class, enterprise software product engineering company specializing in Mobile Application Development, Cloud Applications, Microsoft Technology Solutions, Web Technology and Telecom Services. Impiger Technologies helps enterprises improve busi...
Qosmos, the market leader for IP traffic classification and network intelligence technology, has announced that it will launch the Launch L7 Viewer at CloudExpo | @ThingsExpo Silicon Valley, being held November 1 – 3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The L7 Viewer is a traffic analysis tool that provides complete visibility of all network traffic that crosses a virtualized infrastructure, up to Layer 7. It facilitates and accelerates common IT tasks such as VM migra...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
As companies adopt the cloud-to-streamline workflow, deployment hasn’t been very seamless because of IT concerns surrounding security risks. The cloud offers many benefits, but protecting and securing information can be tricky across multiple cloud providers and remains IT’s overall responsibility. In his session at 19th Cloud Expo, Simon Bain, CEO of SearchYourCloud, will address security compliance issues associated with cloud applications and how document-level encryption is critical for sup...
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
SYS-CON Events announced today that Cemware will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Use MATLAB functions by just visiting website mathfreeon.com. MATLAB compatible, freely usable, online platform services. As of October 2016, 80,000 users from 180 countries are enjoying our platform service.