Pinnacle Renewable Energy's ("Pinnacle") revenue for 2Q 2019 totaled $104.2 million, an increase of 22.4% compared to $85.1 million for the 2Q 2018. The increase was primarily attributable to higher sales volume as the company produced and sold higher volumes of pellets from its Smithers and Aliceville facilities in Q2 2019, while there were no sales from these facilities in Q2 2018.
Adjusted Gross Margin was $21.2 million, or 20.4% of revenue in 2Q 2019, compared to $18.1 million, or 21.3% of revenue in 2Q 2018.
The сompany reported a net profit of $2.4 million in 2Q 2019, compared to $6.5 million in 2Q 2018.
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") totaled $16.1 million in 2Q 2019, compared to $14.9 million in 2Q 2018.
"The 2Q 2019 marked a strong period of production and revenue growth with the ramping up of our new facilities in Smithers and Aliceville. We also continued executing our growth strategy by securing two new Asian contracts, entering into a joint venture with Tolko to build our second pellet mill in Alberta, and progressing on the fourth quarter restart of the full Entwistle facility," said Rob McCurdy, CEO of Pinnacle.
Pinnacle produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets.