Fibria recently posted net revenue of R$2.775 billion in the second quarter of 2017, representing growth of 34% on the first quarter of the year. Compared to the second quarter of 2016, net revenue grew by 16%.
The performance reflects the stronger pulp sales volume in the period, which set a new record for the second quarter of the year, of 1.534 million tons, or 17% higher than in the first quarter of the year. Other factors contributing to the result were the 12% increase in the average net price in U.S. dollar and the 2% appreciation in the average U.S. dollar/Brazilian real exchange rate in the quarter.
In the second quarter, Fibria produced 1.330 million tons of pulp, for growth of 11% sequentially and 3% year-over-year. Supported by operating efficiency gains, better results from cogeneration sales and lower consumption of chemicals and energetics, the company ended the second quarter with production cash cost of R$660 per ton, 12% lower than in the first quarter of the year.
“Conditions in the second quarter remained very positive for pulp producers. Demand strengthened in all regions, which, combined with the supply restrictions due to delays in the startup of new capacities and the unscheduled production shutdowns, resulted in low inventories and supported higher prices. Furthermore, Fibria’s exporter profile benefited from the stronger appreciation in the U.S. dollar. Internally, we remain focused on operational excellence and reducing our production cash cost,” said Fibria CEO Marcelo Castelli.
EBITDA (earnings before interest, taxes, depreciation and amortization) in the second quarter came to R$1.071 billion, advancing 66% from the first quarter of the year. Compared to the second quarter of 2016, EBITDA grew 16%. EBITDA margin in the quarter, excluding pulp sales from the contract with Klabin, stood at 45%, expanding 8 percentage points from 1Q17.
The second quarter of 2017 was marked by the start of Fibria’s deleveraging process. The leverage ratio (Net Debt/EBITDA) in U.S. dollar fell to 3.75 at the end of the second quarter, compared to 3.79 at the end of the first quarter.
