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May 6, 2016

RusForest produces more sawnwood in Q1

RusForest produces more sawnwood in Q1

RusForest AB reported their Q1/2016 preliminary production and sales for its Magistralny and Ust-Ilimsk units.

For the mentioned period, the sawnwood production in Magistralny exceeded 23,000 m3 for the first time in Q1/2016. Both the new pellet mill in Magistralny and the new harvesting operations in Ust-Ilimsk performed well in Q1 2016, according to company’s management comments.

The Central Asian and Northern African markets remained difficult Q1 2016, however, the company managed to redirect more low quality product sales the Japanese market instead. The average sawnwood price realised (price 'on wagon') in Q1 2016 was largely unchanged compared with Q1 2015.

Thus, during the Q1/2016, RusForest harvested 121,121 m3 of sawlogs, 63% more than in Q1/2015 (74,304 m3), which included 28,793 m3 of recently developed own harvesting in Ust-Ilimsk. Harvesting in Magistralny increased by 24% in Q1 2016 to 92,328 m3.

During the mentioned period, RusForest's subcontractors harvested 273,933 m3 in Ust-Ilimsk forest lease areas, compared with 262,415 m3 in Q1 2015 (+4%).

RusForest produced 23,021 m3 of sawnwood during the Q1/2016, compared with 21,778 m3 in Q1 2015 (+6%). Q1 2016 production was the best quarterly production ever from Magistralny.
Moreover, in the respective quarter, RusForest produced 6,225 tonnes of pellets, which was in accordance with plan.

The Swedish forestry company with operations in Russia increased their sales during the Q1/2016. Thus, in Q1 2016 RusForest sold 21,656 m3 of sawnwood compared with 19,291 m3 in Q1 2015 (+12%).

In Q1 2016 RusForest sold 16,340 m3 of sawlogs from Magistralny compared with 16,410 m3 in Q1 2015 (-0%).

Sawlogs sales to the Chinese market were hampered at the beginning of the year. In Q1 2016 RusForest also delivered 26,823 m3 of sawlogs from own harvesting in Ust-Ilimsk to local market.

Moreover, a total of 6,219 tonnes of wood pellets were sold from Magistralny in Q1 2016.

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