RusForest Releases First Quarter Report 2015

RusForest AB, a Swedish forestry company with operations in Russia, today released its first quarter report 2015.

First Quarter Highlights

Sawlogs from continuing operations: Harvested 74,304 m3 of sawlogs in Magistralny in Q1 2015 (Q1 2014: 76,106 m3).

Subcontracting: Harvested 262,415 m3 of sawlogs in Ust-Ilimsk forest lease areas in Q1 2015 (Q1 2014: 192,008 m3).

Sawnwood from continuing operations: Produced 21,778 m3 of sawnwood in Magistralny in Q1 2015 (Q1 2014: 21,711 m3).

Revenue from continuing operations: Generated revenue of USD 5.6 million in Q1 2015 (Q1 2014: USD 8.4 million).

Adjusted EBITDA from continuing operations: Reported adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) of USD 1.9 million in Q1 2015 (Q1 2014: USD 1.3 million).

Profit for the period: Recorded a net profit of USD 1.7 million in Q1 2015 (Q1 2014: net loss of USD 3.2 million).

Cash and Working Capital: Closed the first quarter of 2015 with a cash balance of USD 10.8 million (Q4 2014: USD 10.0 million) and positive working capital of USD 7.2 million (Q4 2014: USD 7.2 million).

Note that the Q1 2014 comparative figures have been restated to reflect that Arkhangelsk business segments was divested in Q4 2014 and is included in the financial results as discontinued operations in the comparative period.

Management Comments

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.”