RusForest AB announced its year-end report 2015, with increased sawmilling and harvesting production in Q4 2015. Also, the Swedish forestry company with operations in Russia got their first annual net profit in 2015.
With the new pellet mill in Magistralny and the new harvesting operations in Ust-Ilimsk that started production in the Q4 2015, RusForest is working on ramp up their production. Except for Japan, all the sawnwood markets were very challenging in the Q4 2015, with a year-on-year decline in average price received as a consequence.
In Q4 2015, RusForest harvested 117,101 m3 of sawlogs, compared with 105,038 m3 in Q4 2014 (+11%), which included 14,420 m3 of recently developed own harvesting in Ust-Ilimsk. For the mentioned period, the company produced 22,488 m3 of sawnwood, compared with 21,368 m3 in Q4 2014 (+5%). Also, RusForest started production of pellets in Magistralny and managed to produce a total of 1,847 tonnes in Q4 2015.
For the full year 2015, the company harvested 287,865 m3 of sawlogs in Magistralny, compared to the 278,896 m3 harvested in 2015. For the Ust-Ilimsk forest lease areas, RusForest harvested 615,166 m3 of sawlogs in the mentioned period, compared to the 320,210 m3 in 2014. Also, sawnwood production reached 85,645 m3 in Magistralny, compared to 78,826 m3 in 2014.
The Swedish company generated revenue of USD 22.0 million in 2015, 19.7% lower than the revenue in 2014, when the company summed USD 27.4 million. The adjusted EBITDA reached USD 4.6 million in 2015, in comparison to the 2014’s EBITDA of 1.5 million. Adjusted EBITDA margin of 21% for full year 2015 compared with 6% in 2014.
“The Company still showed much improved operational profitability in Q4 2015 compared with same period in 2014, largely due to the successful efforts to reduce overhead costs and eliminate losses in Ust-Ilimsk through increased cooperation with key subcontractors,” said Anton Bogdanov, CEO of RusForest Management Company.
RusForest recorded a net profit of USD 3.2 million for full year 2015, compared to the 2014 net loss of USD 14.5 million.
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