(MENAFN- ProactiveInvestors) Shares in () eased lower on Tuesday as the FTSE100 firm cited the continuing fall of crude prices on its decision to take a £98mln hit on its bioethanol joint venture.
The group's interim results for the 24 weeks ending February 28 will include a non-cash exceptional charge to the tune of that sum the group said.
ABF's 47% investment is in Vivergo Fuels which is a £350mln wheat-fed bioethanol joint venture with oil giant () and DuPont in the northeast of England.
The plant opened in 2012 to much fanfare. ABF Foods also blamed falling bioethanol prices and a weakening of the Euro currency as reasons for the impairment.
Bioethanol is mainly produced from the sugar fermentation process and used as a substitute for motor fuel. Prices have fallen dramatically in the last two years and still further since the crude price tank started last summer.
ABF's Primark the budget clothing retailer has been the biggest growth driver at the group recently. However last month in a trading update painted a gloomy outlook for its sugar division.
The firm predicting a marginal fall in adjusted earnings for the current year due to the strength of sterling an expected large profit reduction in the sugar business and a £128m writedown from Chinese agricultural operations.
ABF shares dropped 1.09% on Tuesday to 3080p.
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