Pinnacle Renewable Holdings’ revenue for 1Q 2018 totaled $71 million, an increase of 4.7% compared to $67.8 million for 1Q 2017, as the company said in the press release received by Lesprom Network.
The increase was primarily the result of a higher average sales price per MT, which reflects an improved sales mix due to higher-priced U.K. and European contracts in 1Q 2018 compared to 1Q 2017, higher sales volume, and a one-time sale through of wood pellets from a third-party supplier. Industrial wood pellet sales volumes were approximately 328,000 MT in 1Q 2018, compared to sales volumes of approximately 320,000 MT in 1Q 2017.
Net loss and comprehensive loss was $12.8 million in Q1 2018, compared to $0.3 million in Q1 2017. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") was $12 million in 1Q 2018, compared to $12.2 million in 1Q 2017. The decrease in Adjusted EBITDA was due to higher operating and selling, general and administrative costs, partially offset by higher revenue.
"We have made strong progress in business development in Japan, with the new Ube contract secured in the first quarter and two additional, new customer off-take contracts secured subsequent to quarter end. These three contracts demonstrate the growing commitment in Japan towards generating renewable and reliable baseload power from industrial wood pellets," said Robert McCurdy, CEO. "In addition, our operations performed well in the quarter, as we largely offset the impact of rail service disruptions. We remain on track to meet our target of between $61 to $65 million in Adjusted EBITDA for Fiscal 2018."
Pinnacle Renewable Holdings is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world.