RusForest reported a 26% revenue increase to $6.4 million in 3Q/2016, compared to the same period last year.
However total revenue in the first nine months amounted $9.6 million compared to $15.6 million to the same period in 2015.
Profit amounted to $1.3 million, compared to $1.6 million in 3Q/2015. The company’s 3Q/2016 EBITDA improved significantly year-on-year and amounted to $1.7 million, compared with $0.7 million in 3Q/2015. The large improvement in EBITDA was influenced by the sale of non-core forest leases amounting $0.5 million, according to a company press release.
EBITDA in the first nine months of 2016 also improved 158% compared with same period last year. Adjusted for the nonrecurring income from forest lease sales, EBITDA increased by 72%. Ust-Ilimsk represented the biggest increase in percentage terms.
“Increased volumes of saw logs from Ust-Ilimsk and wood pellets from Magistralny contributed to increased revenue and gross profit in 3Q/2016. Our short-term outlook assumes a mostly unchanged market situation in 4Q compared with 3Q 2016. The strengthening Russian ruble, among other reasons, gave rise to foreign exchange losses in 3Q/2016 and the first nine months of 2016,” Anton Bogdanov, CEO of RusForest Management Company, said.
Source: Lesprom Network