(Alliance News) - Africa-focused timber firm Woodbois Ltd on Thursday reported a sharp rise in third-quarter revenue.
In the three months to September 30, Woodbois generated revenue of USD4.9 million, which the company said is a record quarterly figure. The company also said its quarterly revenue was 44% higher than the average quarterly run-rate from the year before.
Woodbois said its trading division performed "particularly strongly" with USD3.4 million revenue generated. The company noted this is 70% higher than the average quarterly run-rate seen the year before and was also a quarterly record for the company.
"By way of context, while pricing of some more expensive species has fallen by around 10% during 2019, global demand for African hardwood logs has remained consistent despite the backdrop of an economic slowdown in China, which typically accounts for around 50% of total demand," the company explained.
The company's Forestry division is focused on installing new production lines to upgrade its sawmill in Mouila, Gabon, which is expected to complete in the current quarter.
Revenue from its own production totalled USD1.5 million but was hurt by timber exports being halted in Gabon during the summer due the "kevazingogate" scandal which saw logs exported from the country illegally.
"With the export situation for processed timber products returning to normal, our pace of shipments picked up sharply by the end of the quarter, with revenues from these later shipments due to fall within the fourth quarter," Woodbois added.
The company also said it is proposing to restructure its 5% perpetual preference shares in its subsidiary Argento. The preference shares will be repurchased in exchange for the issue of bonds by Woodbois, at a ratio of USD400 in bonds for every preference share, for a total value of USD30 million.
Shares in Woodbois were 4.0% higher in London on Thursday at 5.15 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Woodbois (WBI)