19 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Significant impairment of property, plant and equipment (continued) Financial year ended 31 December 2024 (continued) c) FGV Palm Industries Sdn. Bhd. (“FGVPI”) Biogas plant During the financial year, an impairment assessment was performed for the three biogas plants, which were in loss-making positions due to low electricity generation. Based on the impairment assessment, the recoverable amount of these biogas plant was RM7,300,000, which resulted in the impairment loss of RM1,820,000 for property, plant and equipment and RM4,780,000 for intangible assets. The recoverable amount was determined using value-in-use calculation based on cash flow projections covering a 5 to 8 years period, representing the remaining useful lives of the assets. The key assumptions on the assessment were as follows: 2024 2023 (i) Electricity production (KwH’000) 2,500 – 4,900 8,400 – 14,000 (ii) Electricity rate (RM/KwH) 0.40 – 0.70 0.40 (iii) Production cost (RM/KwH) 0.37 – 1.22 0.28 – 0.57 (iv) Maintenance cost per annum (RM’000) 450 – 1,000 450 – 1,000 (v) Discount rate 10% 10% (vi) Projection period 5 – 8 years 9 years Biomass power plant During the financial year, a biomass power plant remained in a loss-making position due to low utilisation factors, which had been identified as indicator for impairment of the asset. Based on the impairment assessment, the recoverable amount of the biomass power plant was RM39,300,000, which resulted in the impairment loss of RM2,548,000 for property, plant and equipment. The recoverable amount was determined using value-in-use calculation based on cash flow projections covering a 15 year period, representing the remaining useful life of the assets. The key assumptions on the assessment were as follows: 2024 2023 (i) Export utilisation factor 22% – 34% 17% – 37% (ii) Electricity rate (RM/KwH) 0.80 0.80 (iii) Other income per annum (RM’000) 9,452 – 11,154 13,672 (iv) Total cost per annum (RM’000) 25,320 – 34,232 27,427 – 29,142 (v) Discount rate 10% 10% All impairment losses in FGVPI were recognised as the Group’s impairment of non-financial assets and included as impairment loss within the Plantation Division in the Group’s segment reporting (Note 18). Notes to the Financial Statements For the financial year ended 31 December 2024 93
RkJQdWJsaXNoZXIy NDgzMzc=