RusForest releases 2013 results, provides update of Russian plant
RusForest AB, a Swedish forestry company with operations in Russia, recently announced the results of its 2013 annual report. The company began operations of a 100,000 ton-per-year pellet mill in Arkhangelsk, Russia, earlier this year.
On April 23, RusForest announced it had make the first shipment of pellets from the Arkhangelsk facility. The 6,000 ton shipment was expected to be used as fuel in a European power plant. According to the company, the pellet mill passed the production testing phase successfully and is now running at full capacity. Pellets are expected to be shipped to the European industrial market on a monthly basis. The company has also indicated it expects to serve the European municipal and home heating markets in the future.
In its recently released annual report, RusForest reported total 2013 revenue of $66.4 million, compared to $67.9 million in 2012. Adjusted EBITDA was -$8 million last year, compared to -$21.4 million in 2012. The company reported an operating loss of $29.9 million last year, compared to an operating loss of $93.2 million the previous year. Within its annual report, RusForest noted its net loss was reduced by 73 percent last year.
In a statement included within the annual report, RusForest CEO Matti Lehtipuu said the launch of the Arkhangelsk pellet mill is increasing the company’s likelihood of reaching positive cash flow later this year. He also noted that significant changes were made in senior management last year, including the appointment of a new CEO, chief operating officer and chief financial officer. “RusForest is beginning 2014 with a clean slate and clear potential,” Lehtippu wrote in the statement. “Improving global sawnwood markets, growing wood pellet demand in Europe and the weakening Russian ruble give RusForest strong momentum for 2014. Unfortunately, recent events between Russia and Ukraine have overshadowed the solid fundamentals of our business.”