Norwegian fertiliser producer Yara International is to write down the value of its Libyan plant by $112 million, due to the deteriorating security situation.
In a statement, the company said:
"Due to the worsening security outlook in Libya, Yara sees a high likelihood of a further deterioration in 2015 of the operating ability of the Lifeco joint venture plants.
"Given an already challenging feedstock and financial situation for the joint venture, Yara has therefore decided to write down the value of its Lifeco investment by USD 112 million, leaving a remaining book value of USD 18 million.
"The political and security situation in Libya has worsened rapidly, and may deteriorate further over the next year. In light of this, Yara is evaluating the operation of the plants on an on-going basis in cooperation with the other partners, in order to protect the employees as well as the assets.
"Yara will continue participating in the governance of Lifeco, with the aim of resuming full production once real improvements are seen in the security and political situation in Libya, creating a sustainable improved operating outlook for Lifeco.
"The impairment will be reported as part of Yara's first-quarter EBIT and EBITDA, under 'Share of net income in equity-accounted investees'".
(Source: Yara International)