Equatorial Palm Oil likely to write off Liberian asset

By GNNLiberia On Aug 20, 2019 62

By BFN News |

In 2008, the Liberian government leased 34,500 acres of land in Cheo’s district to the British-owned company Equatorial Palm Oil (EPO), for a period of 50 years. About 14,000 of these acres were part of a pre-existing palm oil plantation; the location of the remaining 20,500 was undetermined. Photo credit: American Jewish World Service

Equatorial Palm Oil said it was likely to write off the value of its investment in the Butaw Estate palm oil operation in Liberia, sending it to an annual loss.

The company held a 50% interest in the estate, which was valued at around $10.4m on its balance sheet. Parent company and holder of the other 50% stake, Kuala Lumpur Kepong Berhad, had made an impairment on the asset in its accounts of around $35.1m.

‘It is highly likely that the company will also make an impairment in its accounts to be reflected in the full year results ending 30 September 2019, which would result in reducing the carrying value of its investment to nil,’ Equatorial Palm Oil said.

‘In the event of such impairment, this will result in a significant net loss for the year ending 30 September 2019.’ At 1:53pm: (LON:PAL) Equatorial Palm Oil PLC share price was +0.05p at 0.8p Story provided by StockMarketWire.com

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