(Alliance News) - Equatorial Palm Oil PLC on Wednesday said its loss widened in its most recently ended financial year due to poor performance of its 50%-owned subsidiary.
The AIM-listed palm oil production company said pretax loss in the year to the end of September widened to USD15.1 million from USD4.3 million, with revenue falling to USD167,000 from USD176,000.
Equatorial Palm Oil, through its investment in Equatorial Biofuels Guernsey Ltd, owns a 50% interest in Liberian Palm Developments Ltd, which holds palm oil concessions in Liberia.
In the financial 2014, a joint venture agreement was signed pursuant to which cash and funding commitments of up to USD35.5 million were made available to Liberian Palm Developments. Under the deal, Equatorial Palm Oil retained a 50% economic and voting interest in Liberian Palm Developments.
Equatorial Palm Oil said its 50% share in the loss of USD25.8 million is in excess of its carrying value of Liberian Palm Developments of USD15.1 million.
"Management has assessed the recoverable amount of the company's investment at year end and concluded the carrying amount is fully impaired," the company said in its statement Wednesday.
Equatorial Palm Oil shares were untraded in London on Wednesday, last closing at 1.15 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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