Equatorial Palm Oil plc Operational Update (6446J)
August 20 2019 - 5:56AM
UK Regulatory
TIDMPAL
RNS Number : 6446J
Equatorial Palm Oil plc
20 August 2019
20 August 2019
EQUATORIAL PALM OIL plc
("EPO" or the "Company")
Operational Update
Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil
development and production company with operations in Liberia, West
Africa, wishes to provide an update with respect to its palm oil
operations in Liberia.
Palm Bay Estate
On 26 June 2019, the Company announced that crude palm oil
("CPO") was being transported from Palm Bay estate to the Company's
3,000 MT storage tank export facility at the port of Buchanan.
One of the customers of the operating company at Palm Bay estate
(Libinc Oil Palm Inc.) has confirmed that it will purchase its next
quantity of CPO (2,700 MT) and the customer will arrange for the
CPO to be collected by parcel tanker ship from the port of
Buchanan. This shipment will likely take place in the next 4
weeks.
This is a significant milestone for the Company to have the
export facility up and running and enabling our customers to
purchase our oil palm products in bulk from the port of Buchanan.
We look forward to confirming that the storage tank export facility
will be fully commissioned in Q4 2019 at the port of Buchanan.
Butaw Estate
As was announced to the market on 26 June 2019, as a result of
the downsizing at Butaw estate management are assessing the nature
of impairment at Butaw estate to be reflected in the full year
results of EPO for the year ending 30 September 2019.
The Company has been notified by its parent company Kuala Lumpur
Kepong Berhad ("KLK"), that KLK (in its results for the nine months
ending 30 June 2019 announced today) has made an impairment in its
accounts in respect of its investment in the joint venture company
Liberian Palm Developments Limited ("LPD") as a result of the
impairment of assets at Butaw estate (Liberia Forests Products
Inc.) in the amount of USD35,107,359. Liberia Forests Products Inc.
is the operating company at Butaw estate and a wholly owned
subsidiary of LPD.
EPO holds a 50% joint venture share in LPD and as at 31 March
2019 the value of its investment in LPD as reflected on the EPO
balance sheet was USD10,365,335. 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 in
LPD to nil. In the event of such impairment, this will result in a
significant net loss for the year ending 30 September 2019.
Geoffrey Brown, Executive Director of EPO, commented:
"Having the bulking station and export facility at the port of
Buchanan up and running is the last part of completing our end to
end supply chain. This now allows our customers to purchase our oil
palm products in bulk from the working port."
This is another significant milestone for the Company and also
for Liberia which is looking to re-invigorate the agricultural
industry. EPO is proud to be playing its part in that regard and
continues to work with all key stakeholders."
- END -
For further information, please visit www.epoil.co.uk or
contact:
Equatorial Palm Oil plc +44 (0) 20 7268
Geoffrey Brown (Executive Director) 4874
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
James Harris / James Bellman 3494
Mirabaud Securities Limited (Broker) +44 (0) 20 7484
Peter Krens 3510
Notes to editors:
Equatorial Palm Oil plc is an AIM listed crude palm oil
developer and producer with palm oil estates in Liberia, West
Africa. The Company was founded in 2005 and is focused on becoming
a global, sustainable producer of high quality palm oil to regional
and international markets.
With a land position in Liberia through its operating subsidiary
Liberian Palm Developments Limited ("LPD"), the Company is
geographically well positioned to serve the international and
regional markets and is committed to making a positive impact on
the communities in which it operates through investment in local
schools, health clinics, housing and infrastructure.
The Company's largest shareholder and 50:50 joint venture
partner in LPD is KLK. KLK is one of the largest palm oil producers
in the world and the Company will greatly benefit from their many
years of expertise in oil palm development.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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