OREANDA-NEWS. June 04, 2014. RusForest AB released its 1Q 2014 report. Adjusted EBITDA for the company improved substantially year-on-year, with negative earnings of USD 2.3 million in 1Q 2013 and negative USD 1 million in 4Q 2013 turning into positive adjusted EBITDA of USD 1.4 million in 1Q 2014 – the first ever positive quarter.

The positive result was largely due to continued good profitability in Magistralny. However, it was also achieved through a significant reduction in losses over the last three quarters in Arkhangelsk. In Q 2013, Arkhangelsk made small positive EBITDA when it was still possible to sell chips and sawdust to pulp factories in the area. Ust-Ilimsk actually turned a profit owing to active harvesting by third parties on company forest assets in 1Q 2014. This increased compensation for forest use in Ust-Ilimsk is likely to decrease in 2Q 2014.

RusForest generated USD 17.9 million of revenue (2013: USD 18.1 million) for the three months ended 31 March 2014.

RusForest recorded a net loss of USD 3.2 million (2013: net profit of USD 28.9 million after USD 41.4 million gain on bond restructuring) for the three months ended 31 March 2014.

Matti Lehtipuu, the Company’s Group CEO, commented: “2014 started well for RusForest as we delivered positive EBITDA for the first time in the company’s history. RusForest is on the right track. Our continued operational improvement measures are delivering results, and our sale of non-core assets is strengthening our financial position. Our 2Q 2014 earnings will likely suffer from seasonality, but we are pleased with our progress to date.”

RusForest is a Swedish forestry company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products and wood pellets.