LONDON (Alliance News) - Obtala Ltd on Tuesday said it expects to achieve revenue growth in 2018 despite revenue remaining unchanged in the third quarter, as sawn timber output improves.
The agricultural & forestry company said revenue in the three months to the end of September remained flat year-on-year at USD3.2 million. Despite that, the company said it still expects to achieve USD10 million revenue for the full year. In 2017, Obtala reported revenue of USD8.4 million.
August is typically a slow month in West Africa with a large number of public holidays, the company explained, but September proved to be a record month for the number of containers of sawn timber shipped from Gabon. Revenue for shipments made in late September will be recognised in final quarter of 2018.
Output of sawn timber grew during the period to 3,900 cubic meters compared to 3,800 cubic meters in the second quarter and 3,600 cubic meters in the first quarter. Total output at the sawmills during 2018 has already exceeded that of 2017, Obtala noted.
However, the company warned that Gabon's rainy season commences in October, leading to a decline in overall production in the final quarter of the year.
In the third quarter, Obtala said it shipped a total of 90 containers, almost 30% more than in the previous quarter. The company said it intends to expand its supply chain via agreements with additional shipping lines. In addition, revenue from containers shipped late in September will fall into the fourth quarter earnings.
The order book remains very healthy, Obtala highlighted, at more than USD10 million. The company's internal trading fund also attracted additional capital during the quarter and now stands at USD4 million.
The stock was down 1.6% on Tuesday at 6.55 pence per share.