Energy World Corporation Ltd (ASX:EWC) Updates on Impairment Expenses
Impairment Expense Details
Energy World Corporation Ltd (ASX:EWC) has announced an additional impairment expense of $744,300,000 related to the Sengkang Gas Field and the Gilmore LNG Project. This impairment was identified after the Directors reviewed financial forecasts and made the decision during a board meeting on 19 September 2024. The impairment was communicated in the Annual Report released on 30 September 2024.
Additionally, a finance expense of $13,400,000 and a gain on debt modification of $6,800,000 are also to be reported in connection with the recalculation of the carrying value of the Slipform loan. These figures were determined and disclosed in a timely manner following due consideration by the Audit Committee and Board.
Compliance Confirmation
The company confirmed compliance with the ASX Listing Rules, specifically Listing Rule 3.1, which mandates immediate disclosure of information that could materially affect the value of its securities. The EWC Board received the necessary declarations on 30 September 2024, affirming that financial records were maintained per statutory requirements.
Brian Allen, Managing Director of Energy World Corporation, stated, “The decision to impair the Projects reflects our ongoing assessment of the economic viability of these assets and aligns with our commitment to uphold transparency and integrity in our financial reporting.”
Future Outlook
The Directors noted that the carrying value of the Projects will continue to be reassessed as conditions change and funding opportunities arise. The expected completion dates for the Projects are contingent upon securing adequate funding, as outlined in the Annual Report.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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