Pinnacle reaches profit zone again in 2018

08.03.2019 − 

In the fourth quarter Pinnacle Renewable Energy Group achieved increases in turnover and results. At Can$103.7m, turnover was some 42% above the preceding year’s figure. The adjusted EBITDA amounted to Can$13.8m. Gross profit, at Can$16.7m, was only up by 5%, whereas net profit for the quarter increased considerably to Can$7.5m. The gross margin per ton of pellets declined by 26% to Can$35.23/t due to the price decrease on European markets. The pellet volumes sold in the reporting period increased by 42% vis à vis the preceding year to 473,000t.

For the first financial year after concluding the IPO in February 2018 Pinnacle records net profit of Can$2.702m, following a loss of -Can$4.884m in 2017. Turnover generated in 2018 increased by almost 19% to a total Can$347.4m. Of this figure, sales of pellets generated Can$339.8m and services (port services) generated Can$7.7m. The conclusion of further long-term contracts, especially with purchasers in Japan, meant orders in hand as per 31 December, at Can$5.9bn, were virtually twice as high as they were at the same time in the preceding year.

The 400,000t pellet plant of Pinnacle in Entwistle, Alberta, which was damaged by a fire on 11 February, remains closed for the time being. According to a statement issued by the company on 25 February, the fire broke out in the area of the dryer and a total of twelve persons were injured. The cause of fire is currently still under investigations by Alberta Labour Occupational Health and Safety (OHS). Production of dry fibre is expected to recommence over the course of the coming months. The company is making the date on which regular pellet production can recommence dependent on the result of the investigations into the cause of the fire as well as the potential replacement investments required in safety technology. The plant in Entwistle had only been commissioned as recently as September 2018.

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