Viridis Energy reports progress in 2013 financial results

By Erin Voegele | April 16, 2014

Canadian pellet producer Viridis Energy Inc. has released its 2013 financial results, reporting revenues of $13.9 million, a 46 percent increase over the $9.5 million in revenues reported in 2012. The company said the year-over-year improvement reflects strengthened market dynamics, including improved pricing, increased demand in Europe, and the achievement of production capacity goals at its Okanagan pellet plant and additional production from the new Scotia Atlantic Biomass facilities.

Viridis reported a gross profit of $2 million, up from $1.1 million in 2012. According to information released by the company, it reported a comprehensive loss of $3.3 million, or 3 cents per basic share, which included $5.8 million write downs of impairment of intangible assets and non-refundable deposit. The loss from operations was $2.7 million in 2013, compared to a $2.9 million loss from operations in 2012.

During the fourth quarter of 2013, Viridis generated revenue of $6.1 million, a 147 percent increase over the same period in 2012. The company reported a comprehensive loss for the quarter of $1.3 million, or 1 cent per share, compared to a $6.7 million, or 19 cent per share, comprehensive loss during the fourth quarter of 2012. The gross profit for the fourth quarter was $615,000, up from $409,000 during the same period of the previous year.

“We have delivered four sequential growth quarters during 2013 and the company is well positioned for a breakout year in 2014,” said Christopher Robertson, CEO of Viridis, in a statement. “Our Okanagan plant achieved full capacity with record margins, and in September 2013 we commenced shipments from our new plant in Nova Scotia, which we anticipate will reach full operating capacity in the second half of 2014. Additionally, we have established an important avenue for additional growth, Viridis Merchants, enabling us to accommodate commercial orders incremental to our own production capacity.”

Viridis began production at its 120,000-ton-per-year Scotia Atlantic plant during the third quarter of 2013. Last year, the company also entered a two-year marketing agreement with Ekman & Co. AB for the facility’s entire output. The agreement expires in August 2015.

In its financial release, Viridis highlighted the December 2013 launch of Viridis Merchants and noted that Viridis Energy restructured $5.7 million of debt with Cornwall Investments LLC into two new facilities and refinance one of those facilities with the Royal Bank of Canada at a more favorable interest rate. During the second quarter of last year, the company also secured $5 million in a private placement of new equity.