Difficult year for RusForest

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RF/IHB/RS
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RusForest AB, a Swedish forestry company with operations in Russia, today released its fourth quarter and year end report 2014. In the fourth quarter ended December 31, 2014, the company harvested 105,038 m3 of sawlogs in Magistralny, Russia (4Q/2013: 94,220 m3). Also, RusForest harvested 106,379 m3 of sawlogs in Ust-Ilimsk forest lease areas in Q4 2014 (Q4 2013: 68,174 m3). The company produced 21,368 m3 of sawnwood in Magistralny (4Q/2013: 20,805 m3).

In the quarter, RusForest generated a revenue of USD 7.1 million as compared to USD 8.1 million in the same quarter of 2013. EBITDA was USD 1.6 million in Q4 2014 (Q4 2013: USD 0.5 million).

Anton Bogdanov, CEO of RusForest Management Company, commented: “2014 presented us with a number of challenges ranging from the global economic environment to the uncertain political situation, and some difficult strategic decisions were required. Despite the challenges, RusForest continued to execute on the structural and operational improvements that we initiated in the beginning of 2013 and that resulted in 2014 being the first year of positive EBITDA in the company’s history. We now have a positive cash flow platform with a cash balance of USD 10 million and no interest-bearing debt at year-end.”

2014 Full-Year Highlights

  • Sawlogs from continuing operations: Harvested 278,896 m3 of sawlogs in Magistralny in 2014 (2013: 312,228 m3).
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  • Subcontracting: Harvested 320,210 m3 of sawlogs in Ust-Ilimsk forest lease areas in 2014 (2013: 222,414 m3).
  • Sawnwood from continuing operations: Produced 78,826 m3 of sawnwood in Magistralny in 2014 (2013: 70,924 m3).
  • Revenue from continuing operations: Generated revenue of USD 27.4 million in 2014 (2013: USD 34.0 million).
  • Adjusted EBITDA from continuing operations: Reported EBITDA of USD 1.5 million in 2014 (2013: USD -4.3 million).

Rusforest divested in 2014 the Boguchany and Arkhangelsk business segments which are included in the financial results as discontinued operations.

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