Pinnacle Renewable Holdings Inc. announced its financial results for the 3Q 2018. Revenue for 3Q 2018 totaled $87.6 million, an increase of 6.4% compared to $82.4 million for the 3Q 2017, as the company said in the press release received by Lesprom Network.
Net profit and comprehensive income was $1.5 million in 3Q 2018, compared to a net loss and comprehensive loss of $6 million in 3Q 2017. The variance was primarily attributable to a $9.5 million decrease in other expense and a $2.1 million decrease in finance cost, partially offset by a $3.7 million decrease in profit before finance costs and other (income) expenses.
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") was $14.5 million in 3Q 2018, compared to $16.8 million in 3Q 2017. The decrease was primarily attributable to increased production costs, partially offset by higher revenue.
"Our 4.7% same-facility production volume increase in Q3 2018 compared to the same period last year, reflects strong production performance despite a challenging environment. Our operations in the quarter were impacted by the record level of forest fires in B.C., rail disruptions and Entwistle facility commissioning issues. With the fire season now over, and our Entwistle storage silo now complete, we expect to realize higher production volumes and lower costs in the 4Q," said Robert McCurdy, CEO. "The 4Q will also be highlighted by initial production volumes from our new Smithers, B.C. facility and our recently acquired production facility in Aliceville, Alabama, in the important Southeast U.S. fibre basket. During 2018, we will have added 795,000 metric tons of run-rate capacity and we will be well positioned in 2019 to deliver from our nine production facilities."
Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets.
