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Pinnacle achieves record result in third quarter

01.12.2020 − 

Favourable weather conditions, lower raw-material costs, and positive effects from investment activity contributed to a record output and profitability at Pinnacle Renewable Energy Group (Pinnacle) in the third quarter. According to the quarterly report published on 9 November, output at the Lavington pellet works was increased by 39 % to 587,000 t in spite of damage caused by fire at the end of September. A total of 600,000 t of pellets were sold in the period under review, which equates to an increase of almost 42 % against last year.

Owing to the higher sales volume, sales revenue for the quarter was boosted to CAD131.7m. When comparing this with last year, however, it must be taken into account that losses had arisen in sales revenue in the third quarter of 2019 due to strike-related delays in deliveries.

Due to the high level of cutting activity in the North American sawmilling industry, the share of the raw-material mix accounted for by sawmill residues assortment rose by ten percentage points from 74 % to 84 %. The average raw-material costs were 2 % lower than in the preceding quarter and stocks of raw materials were reduced by 10 %, the company said. Unit costs fell by 7 %. An increase of 25 % in the adjusted gross margin to CAD52.91/t contributed to the improvement of 92 % in adjusted EBITDA to CAD26.1m. The pre-tax and net result were well above a year earlier at CAD15.4m and CAD7.7m, respectively.

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