RusForest AB announced its Q2 2016 report, with increased sawmilling and harvesting production.
The Swedish forestry company with operations in Russia reported increased harvesting production, of 31,770m3 of logs in Magistralny and Ust-Ilimsk in Q2 2016 (Q2 2015: 29,704 m3), representing almost 7% increase. Also, the company harvested 714 m3 of logs in Ust-Ilimsk subcontracted forest lease areas in the mentioned period, compared to the 82,816 m3 in the same period last year.
RusForest produced 17,838 m3 of sawnwood in Magistralny in Q2 2016, compared to the 18,467 m3 in the Q2 2015.
“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. 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" said Anton Bogdanov, CEO of RusForest Management Company.
The company's generated revenue amounted to USD 5.8 million, compared to the USD 4.9 million in the Q2 of 2015, an 18% increase. Also, the EBITDA reached USD 3.0 million in Q2 2016, including income from non-core forest lease sales (Q2 2015: USD 0.3 million). The profit for the mentioned period was of USD 1.4 million in Q2 2016, compared to the Q2 2015, when there was a net loss of USD 1.6 million recorded.
In the first six months of the year, RusForest harvested 152,891 m3 of logs in Magistralny and Ust-Ilimsk (6M 2015: 104,008 m3) and 274,647 m3 of logs in Ust-Ilimsk subcontracted forest lease areas (6M 2015: 345,231 m3).
The generated revenue was of USD 13.2 million (6M 2015: USD 10.5 million) and the profit for the first half of the year amounted to USD 2.6 million (6M 2015: net profit of USD 0.2 million).
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.