RusForest posts 1Q net profit of $1.7 million

Photo: RusForest

Swedish RusForest generated revenue of $5.6 million in 1Q 2015 compared to $ 8.4 million in 1Q 2014. RusForest recorded a net profit of $1.7 million in 1Q 2015 compared to net loss of $3.2 million in 1Q 2014.

Adjusted EBITDA improved 48% year-on-year, with adjusted EBITDA of $1.9 million in 1Q 2015 compared with $1.3 million in 1Q 2014.

Anton Bogdanov, CEO of RusForest Management Company, commented: “The first quarter of last year was marked by our first significant breakthrough: reaching our first positive EBITDA. This quarter we took another big step forward with our first net profit. This result validates the strategic and tactical decisions we have taken. Key factors in this improved financial performance include continuous operational optimization, administrative cost-cutting, a reduction in finance costs and the weakening of the Russian rouble.”

In 1Q 2015, RusForest harvested 74,304 cubic metres of sawlogs, compared with 76,106 cubic metres in 1Q 2014 (-2.4%). Due to weather conditions, hauling at the end of 1Q 2015 was hampered. Harvesting activity in Magistralny was constrained to prevent surplus log volume accumulation at cutting areas.

In 1Q 2015, RusForest produced 21,778 cubic metres of sawnwood, compared with 21,711 cubic metres in 1Q 2014 (+0.3%).

In 1Q 2015, RusForest’s subcontractors harvested 262,415 cubic metres of sawlogs in Ust-Ilimsk forest lease areas, compared with 192,008 cubic metres in 1Q 2014 (+37%). This achievement was due to closer cooperation with all subcontractors.

RusForest is operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products.