IPNews-Monrovia, Liberia-14 May 2018: Equatorial Palm Oil PLC said Monday its half-year loss deepened amid expanded losses at its joint venture as it prepares for production from its new mill later in the year.
For the six months ended March, pretax loss deepened to USD2.0 million from USD1.1 million the year prior. This was despite revenue growing to USD90,000 from USD81,000 the year before.
Profit performance was hurt by a bigger operating loss at its joint venture Liberian Palm Developments Ltd, in which it holds a 50% stake. The share of this loss attributable to Equatorial Palm was USD2.0 million, up from USD1.2 million the year prior.
“The commissioning of the new palm oil mill at Palm Bay estate in Q3 2018 will be a significant milestone for EPO,” Equatorial Chairman Michael Frayne said.
“In addition to the mill, the group is also building a kernel crushing plant and a bio-gas plant both of which will be a first for Liberia.”
“EPO has been in Liberia for over a decade and the commencement of production at our new mill later this year from our palms planted from 2011 will mark a fantastic achievement for the company,” Frayne added.
“The sustainable palm oil business is a long-term commitment to the Government of Liberia and its people, and the company maintains its unwavering support for the agricultural industry in Liberia through partnering with all stakeholders”, Frayne continued.
Equatorial Palm Oil is one of the palm industry in Liberia which is progressive to becoming a global, sustainable producer of high quality crude palm oil with its operations in Liberia.
Additionally, Equatorial Palm Oil-EPO works alongside communities in which it operates and adheres to stringent policies and procedures relating to human rights, environment and corporate social responsibility.
The Company which was founded in 2005 and listed on the AIM market of the London Stock Exchange in 2010.
As part of its operational policy, EPO has signed 2 concessions that were previously oil palm estates for the development of oil palm in Liberia.
Other development of EPO, includes the acquisition of Palm Bay Estate with a 13,007 hectares of land as part of the concession as well as expansion areas totalling 20,234 hectares of which 50% is set aside for outgrower programmes.
In Butaw Estate, EPO has 8,750 hectares of land as part of the concession as well as expansion areas totalling 46,539 hectares of which 15,680 hectares is set aside for outgrower programmes.
Interestingly, EPO is part of a joint-venture with KL-Kepong International Limited, a subsidiary of Kuala Lumpur Kepong Berhad (KLK).
KLK is one of the largest palm oil producers in the world and EPO will greatly benefit from their many years of expertise in oil palm development.
Other activities of EPO are significant investment in local communities, building roads, schools and health clinics. Workers total 1,200 and the plan is to increase that to 10,000, making us one of the largest employers in Liberia.
Geographically the company is well located for regional supply. Nearly 1 million tonnes of crude palm oil are imported into West Africa each year and demand continues to grow. By supplying the local market, EPO will help in reducing imports and making a positive impact on the community and regional economy.
