07/06/2011 (Interactive Investor) - Full-year results from Equatorial Palm Oil (PAL), the Liberian-focused palm oil development company, revealed a robust financial position.

The company said it achieved a number of significant corporate milestones during the year ended 31 December 2010 and made strong operational progress on the ground in Liberia.

Its AIM listing in February last year raised £6.5 million, although it lost $4.4 million in associated costs, adding that this was in line with expectations.

However, the company said it has a strong net cash position with $6.8 million (£4.14 million) in the bank, compared to $0.1 million in 2009, and having repaid all outstanding loans.

Michael Frayne, executive chairman commented: "Through the initial capital raised on admission to AIM, supplemented by the $60.0 million joint venture, the foundations are in place for EPO to benefit from an acceleration and expansion of its strategic development plan in respect of its c169,000 hectare land position at Palm Bay, Butaw and River Cess."

He said the company has an ambitious goal of achieving 50,000 hectares of plantations within 10 years. "I believe we have the experienced management team, strong strategic partner in BioPalm and an excellent shareholder base, to achieve this."

Equatorial's strategic relationship with BioPalm - a wholly owned subsidiary of Indian conglomerate the Siva Group - was further cemented with the $60 million joint venture approved by shareholders in December 2010, but consummated in February 2011.

BioPalm has contributed $22.5 million equity funds and Equatorial subsidiary, Equatorial Bio-Fuel (Guernsey) contributed $7.5 million equity funds for a 50% interest in the company's Liberian oil palm assets. In May last year, the company received a further £5 million subscription agreement with BioPalm as a cornerstone investor.

Looking ahead, chairman Michael Frayne said the company considered the outlook for the global palm oil market is positive, with strong growth in demand driving a significant increase in CPO prices over the reporting period, from a price of $805/t at the start of January 2010 to $1,200/t in May 2011.