RusForest : Releases Third Quarter Report 2015

Stockholm, 2015-11-27 08:05 CET (GLOBE NEWSWIRE) -- RusForest AB (publ) ('RusForest' or the 'Company') (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, today released its third quarter report 2015.

Third Quarter Highlights

• Sawlogs from continuing operations: Harvested68,100m3 of sawlogs in Magistralny in Q3 2015 (Q3 2014:83,950m3).

• Subcontracting: Harvested53,106m3 of sawlogs in Ust-Ilimsk forest lease areas in Q3 2015 (Q3 2014:21,823m3).

• Sawnwood from continuing operations: Produced22,912m3 of sawnwood in Magistralny in Q3 2015 (Q3 2014:21,619m3).

• Revenue from continuing operations: Generated revenue of USD 5.1 millionin Q3 2015 (Q3 2014: USD 7.4 million).
  
• Adjusted EBITDA from continuing operations: Reported adjusted earnings before interest, taxes, depreciation and amortization ('EBITDA') of USD 0.6 millionin Q3 2015 (Q3 2014: USD 0.1 million).
  
• Profit for the period: Recorded a net profit of USD 1.6 millionin Q3 2015 (Q3 2014: net loss of USD 2.5 million).
  
• Cash and Working Capital: Closed the third quarter of 2015 with a cash balance of USD 9.1 million (Q4 2014: USD 10.0 million) and positive working capital of USD 3.0 million (Q4 2014: USD 7.2 million).

Nine months 2015 Highlights

• Sawlogs from continuing operations: Harvested172,108m3 of sawlogs in Magistralny in 9M 2015 (9M 2014:173,858m3).

• Subcontracting: Harvested398,337m3 of sawlogs in Ust-Ilimsk forest lease areas in 9M 2015 (9M 2014:213,831m3).

• Sawnwood from continuing operations: Produced63,157m3 of sawnwood in Magistralny in 9M 2015 (9M 2014:57,443m3).

• Revenue from continuing operations: Generated revenue of USD 15.6 millionin 9M 2015 (9M 2014: USD 20.6 million).
  
• Adjusted EBITDA from continuing operations: Reported adjusted earnings before interest, taxes, depreciation and amortization ('EBITDA') of USD 2.9 millionin 9M 2015 (9M 2014: USD 0.0 million).
  
• Profit for the period: Recorded a net profit of USD 1.8 millionin 9M 2015 (9M 2014: net loss of USD 9.6 million).

Note that the Q3 and nine months 2014 comparative figures have been adjusted to reflect that Arkhangelsk business segments was divested in Q4 2014 and is includedin the financial results as discontinued operations in the comparative period.

Management Comments

Anton Bogdanov, CEO of RusForest Management Company, commented:

'We continue to deliver positive EBITDA and improve year-on-year results in Q3 2015. Good cost control and benefit from the weak Russian ruble combined with strong position on the Japanese market continue to be the strengths and sources of good results for the Company in the current difficult market environment. All our current key projects; pellet mill in Magistralny, development of own harvesting in Ust-Ilimsk and legal structure optimisation have successfully progressed and we were happy to conclude the transaction for the sale of the Arkhangelsk business segment in November. In addition we initiated a synthetic buyback program in September 2015 due to the continuous improvements of the core business and strong financial position'

Conference Call

The Company will hold a telephone conference today at 11:00 a.m. CET where management will be available to comment on the report and the latest developments.

To participate in the conference call, please dial the following numbers at least five minutes before the scheduled event:

From Sweden: +46 (0) 8 50556474

From United Kingdom: +44 203 3645374

From North America: +1 (855) 7532230

To take part in the interactive presentation, please use webcast link:http://edge.media-server.com/m/p/hwwdttaqor visit RusForest's website atwww.rusforest.comand click on the link for thethird quarter report 2015 telephone conference. A presentation will also be available for download from the website.

A replay of the telephone conference will be available on RusForest's website approximately one hour after the completion of the event through the same links as for live participation.

About RusForest AB

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. RusForest is listed on NASDAQ OMX Stockholm First North (ticker 'RUSF').

RusForest AB's Certified Adviser on First North is Pareto Securities AB.

For additional information, please visit the Company's website atwww.rusforest.comor contact:

Gustav Wetterling, Group CFO, telephone: +46 8 771 85 00