RusForest recorded a net loss of $2.5 million (2013: net loss of $7.1 million) for the three months ended 30 September 2014.
RusForest adjusted EBITDA was $0.7 million (2013: $1.2 million) for the three months ended 30 September 2014.
RusForest sawnwood sales in 3Q 2014 were 13% higher than in 3Q 2013 (51,659 cubic metres compared with 45,675 cubic metres).
In 3Q 2014, RusForest increased its sales on the European market (17,344 cubic metres compared with 11,746 cubic metres in 3Q 2013). One of the reasons for this was that one of the vessels scheduled for the beginning of 4Q 2014 was instead transported in 3Q 2014. This increase in deliveries to Europe for the quarter influenced the sales by region breakdown for the quarter.
The company achieved a gross profit of $3.7 million in 3Q 2014 in continuing operations, representing a 22% gross profit margin, compared with gross profit of $1 million in 3Q 2013. As previously stated, the company achieved positive adjusted EBITDA in continuing operations of $0.8 million, compared with negative $1.2 million in 3Q 2013. The operating loss in continuing operations was $2.2 million in 3Q 2014, compared with a loss of $5.1 million in 3Q 2013.
Discontinued operations, which consist of Boguchany forest and harvesting operations, generated a profit after tax of $1.5 million in 3Q 2014, compared with a loss of $1.6 million in 3Q 2013. The loss for 3Q 2014 amounted to $2.5 million, compared with a loss of $7.1 million in 3Q 2013.
In 3Q 2014, RusForest harvested 90,992 cubic metres of sawlogs, compared with 114,040 cubic metres in 3Q 2013 (-20%). The low harvesting volumes were caused by poor weather conditions and problems with haulage mainly in Arkhangelsk.
In 3Q 2014, RusForest produced 54,447 cubic metres of sawnwood, compared with 53,305 cubic metres in 3Q 2013 (+2%).
In 3Q 2014, pellet production in Arkhangelsk totalled 16,646 tonnes.
Matti Lehtipuu, the Company’s Group CEO, commented: “The 3Q 2014 results demonstrate that we are achieving stability in our business. We continue to improve EBITDA and reduce our net loss. Despite the challenging macro environment, we will continue to execute our plan to reach profitability.”
RusForest is a Swedish forestry company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products and wood pellets.
