What are the details?
RusForest AB (publ) (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, today released its third quarter report 2015.
Third Quarter Highlights
– Sawlogs from continuing operations: Harvested 68,100 m3 of sawlogs in Magistralny in Q3 2015 (Q3 2014: 83,950 m3).
– Subcontracting: Harvested 53,106 m3 of sawlogs in Ust-Ilimsk forest lease areas in Q3 2015 (Q3 2014: 21,823 m3).
– Sawnwood from continuing operations: Produced 22,912 m3 of sawnwood in Magistralny in Q3 2015 (Q3 2014: 21,619 m3).
– Revenue from continuing operations: Generated revenue of USD 5.1 million in Q3 2015 (Q3 2014: USD 7.4 million).
– Adjusted EBITDA from continuing operations: Reported adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) of USD 0.6 million in Q3 2015 (Q3 2014: USD 0.1 million).
– Profit for the period: Recorded a net profit of USD 1.6 million in Q3 2015 (Q3 2014: net loss of USD 2.5 million).
– Cash and Working Capital: Closed the third quarter of 2015 with a cash balance of USD 9.1 million (Q4 2014: USD 10.0 million) and positive working capital of USD 3.0 million (Q4 2014: USD 7.2 million).
Nine months 2015 Highlights
– Sawlogs from continuing operations: Harvested 172,108 m3 of sawlogs in Magistralny in 9M 2015 (9M 2014: 173,858 m3).
– Subcontracting: Harvested 398,337 m3 of sawlogs in Ust-Ilimsk forest lease areas in 9M 2015 (9M 2014: 213,831m3).
– Sawnwood from continuing operations: Produced 63,157 m3 of sawnwood in Magistralny in 9M 2015 (9M 2014: 57,443 m3).
– Revenue from continuing operations: Generated revenue of USD 15.6 million in 9M 2015 (9M 2014: USD 20.6 million).
– Adjusted EBITDA from continuing operations: Reported adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) of USD 2.9 million in 9M 2015 (9M 2014: USD 0.0 million).
– Profit for the period: Recorded a net profit of USD 1.8 million in 9M 2015 (9M 2014: net loss of USD 9.6 million).
Note that the Q3 and nine months 2014 comparative figures have been adjusted to reflect that Arkhangelsk business segments was divested in Q4 2014 and is included in the financial results as discontinued operations in the comparative period.
Management Comments
Anton Bogdanov, CEO of RusForest Management Company, commented:
“We continue to deliver positive EBITDA and improve year-on-year results in Q3 2015. Good cost control and benefit from the weak Russian ruble combined with strong position on the Japanese market continue to be the strengths and sources of good results for the Company in the current difficult market environment. All our current key projects; pellet mill in Magistralny, development of own harvesting in Ust-Ilimsk and legal structure optimisation have successfully progressed and we were happy to conclude the transaction for the sale of the Arkhangelsk business segment in November. In addition we initiated a synthetic buyback program in September 2015 due to the continuous improvements of the core business and strong financial position”