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Energy Developments Ltd (ASX:ENE) will book a $34 million write-down in its half year results against the carrying value of the West Kimberly power project.
The power-generation developer says the project is operating well but a reassessment of the current and future trading conditions indicates that reducing the carrying value is appropriate.
The impairment charge will be treated as a specific item by the company and is un-audited, and as a non-cash item will not affect the company’s cash-flow or debt covenants.
Energy Developments is due to release its final results on 24 February.
In the year to 30 June 2010 Energy Developments reported a net profit of $16.4 million.