Stockholm, 2016-08-30 08:05 CEST (GLOBE NEWSWIRE) -- RusForest AB (publ) (“RusForest” or the “Company”) (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, today released its second quarter report 2016.
Second Quarter Highlights
- Harvesting: Own harvesting of 31,770m3 of logs in Magistralny and Ust-Ilimsk in Q2 2016 (Q2 2015: 29,704 m3).
- Subcontracting: Harvesting of 714 m3 of logs in Ust-Ilimsk subcontracted forest lease areas in Q2 2016 (Q2 2015: 82,816 m3).
- Sawnwood: Produced 17,838 m3 of sawnwood in Magistralny in Q2 2016 (Q2 2015: 18,467 m3).
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Revenue: Generated revenue of USD 5.8 million in Q2 2016 (Q2 2015: USD 4.9 million).
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EBITDA: Reported earnings before interest, taxes, depreciation and amortization (“EBITDA”) of USD 3.0 million in Q2 2016, including income from non-core forest lease sales (Q2 2015: USD 0.3 million).
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Profit for the period: Recorded a net profit of USD 1.4 million in Q2 2016 (Q2 2015: net loss of USD 1.6 million).
- Cash and Working Capital: Closed the second quarter of 2016 with a cash balance of USD 12.5 million (Q4 2015: USD 8.4 million) and positive working capital of USD 1.8 million (Q4 2015: USD 2.5 million).
Six months 2016 Highlights
- Harvesting: Own harvesting of 152,891 m3 of logs in Magistralny and Ust-Ilimsk in 6M 2016 (6M 2015: 104,008 m3).
- Subcontracting: Harvested 274,647 m3 of logs in Ust-Ilimsk subcontracted forest lease areas in 6M 2016 (6M 2015: 345,231 m3).).
- Sawnwood: Produced 40,859 m3 of sawnwood in Magistralny in 6M 2016 (6M 2015: 40,245 m3).
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Revenue: Generated revenue of USD 13.2 million in 6M 2016 (6M 2015: USD 10.5 million).
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EBITDA: Reported earnings before interest, taxes, depreciation and amortization (“EBITDA”) of USD 6.0 million in 6M 2016 (6M 2015: USD 2.3 million).
- Profit for the period: Recorded a net profit of USD 2.6 million in 6M 2016 (6M 2015: net profit of USD 0.2 million).
Management Comments
Anton Bogdanov, CEO of RusForest Management Company, commented:
“RusForest is happy to report a financially very strong second quarter, largely due to the successful sales of non-core forest leases and recognition of profit thereto.
RusForest has been working to optimize its forest lease portfolio and with the successful conclusion of these most recent sales of non-core forest leases in the Ust-Ilimsk production unit, the main phase of optimization is completed.
Both new business activities performed as expected and short term focus is mainly on further improvement of the Ust-Ilimsk harvesting performance to increase revenue and profitability further, however, RusForest is currently also reviewing the long term technical strategy for the Magistralny sawmilling operation, to ensure long term maximum output, efficiency and safety based on available forest resources.”
Conference Call
The Company will hold a telephone conference today at 11:00 a.m. CEST where management will be available to comment on the report and the latest developments.
To participate in the conference call, please dial the following numbers at least five minutes before the scheduled event:
From Sweden: +46 (0) 8 50556474
From United Kingdom: +44 203 3645374
From North America: +1 (855) 7532230
To take part in the interactive presentation, please use webcast link: http://edge.media-server.com/m/p/oktzttf6 or visit RusForest’s website at www.rusforest.com and click on the link for the second quarter report 2016 telephone conference. A presentation will also be available for download from the website.
A replay of the telephone conference will be available on RusForest’s website approximately one hour after the completion of the event through the same links as for live participation.
About RusForest AB
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. RusForest is listed on NASDAQ OMX Stockholm First North (ticker “RUSF”).
RusForest AB's Certified Adviser on First North is Pareto Securities AB.
For additional information, please visit the Company’s website at www.rusforest.com or contact:
Gustav Wetterling, Group CFO, telephone: +46 8 771 85 00
