Pinnacle Renewable Energy reports financial results
Pinnacle Renewable Energy announces its financial results for the 13-week period ended March 29, 2019.
Q1 2019 Highlights: revenue increased 26.2% to $89.6 million (€80 million), compared to Q1 2018; Adjusted EBITDA totalled $8.3 million (€7.4 million), compared to $12.0 million (€10.7 million) in Q1 2018; Excluding the impact of the implementation of IFRS 162 and the incident at the Company's Entwistle facility, Q1 2019 Adjusted EBITDA¹ was $8.7 million (€7.7 million); Pinnacle sold approximately 402,000 metric tons of industrial wood pellets, an increase of 22.6% compared to Q1 2018; Secured a third long-term, take-or-pay contract with Sumitomo Corporation to supply 200,000 MTPA of industrial wood pellets starting in 2022; Commenced commercial production at new production facility in Smithers, BC; and Negotiated rail cost rates for a five-year term for Pinnacle's operations in Western Canada with Canadian National Railway.
"Our strong first quarter revenue growth reflects early contributions from our new production facilities and the continued market demand," said Rob McCurdy, CEO of Pinnacle. "While our profitability in the quarter was negatively impacted by the fire event at Entwistle and higher costs due to record and near record cold temperatures in our northern mill locations, our outlook for the remainder of 2019 is positive. We have restarted operations at Entwistle, our Smithers and Aliceville facilities are moving towards full production as expected, and we are undertaking significant upgrades to our Williams Lake and Meadowbank Facilities that will better position us to adapt to cyclical changes in wood fibre supply in BC, while also improving production capacity and operating efficiencies."
