RusForest'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 in the amount of $0.5 million.
EBITDA for nine months 2016 improved 158% compared with same period in 2015. Adjusted for the nonrecurring income from forest lease sales EBITDA increased by 72%. In percentage of increase Ust-Ilimsk represented the biggest component in EBITDA for nine months 2016.
RusForest 3Q revenue increased by 26% to $6.4 million, compared to $5.1 million in 3Q 2015. RusForest reported revenue of $9.6 million in 9M 2016, compared to $15.6 million in 9M 2015.
The Company achieved a gross profit of $3.1 million in 3Q 2016, representing a 49% gross profit margin, compared with gross profit of $2.2 million and gross profit margin of 44% in 3 Q2015. The operating profit was $1 million in 3Q 2016, compared with a loss of $0.01 million in 3Q 2015.
Profit for the period in 3Q 2016 amounted to $1.3 million, compared with a profit of $1.6 million in 3Q 2015. For the nine months of 2016 the profit amounted to $3.9 million compared with a profit for the period of $1.8 million in 2015.
“As previously reported the increased volumes of sawlogs from Ust-Ilimsk and wood pellets from Magistralny contributed to increased revenue and gross profit in 3Q 2016, compared with 3Q 2015. The Company also experienced higher average sawnwood and sawlog prices in 3Q 2016 than in the previous quarter and in 3Q 2015. Our short-term outlook assumes a mostly unchanged market situation in 4Q compared with 3Q 2016. The financial result in 3Q 2016 and for nine months 2016 benefit from non-recurring income related to the sale of non-core forest leases, while the Russian rouble continue to strengthen and among other give rise to foreign exchange losses in 3Q 2016 and for nine months 2016,” Anton Bogdanov, CEO RusForest Management Company, said.
RusForest is a Swedish forestry company operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products.