Pinnacle's Alberta and Alabama Mills Drive Q2 Revenues

SEATTLE (Scrap Monster): Pinnacle Renewable Energy reported record revenues of $132.2 million in second quarter 2020, 27% higher than the revenues of $104.2 million recorded during the corresponding quarter a year before. Also, it was higher by 19% from the previous record of $110.7 million recorded in Q1 last year. The surge in revenues was mainly on account of rise in production and shipment volumes.

The company’s adjusted gross margin was $20 million, equivalent to 15.1% of revenue. This compares with $20.3 million or 19.5% of revenue in the same quarter last year. The adjusted EBITDA increased from $15.3 million in Q2 last year to $16.1 million in Q2 2020. Meantime, the net income dropped from $1.5 million in Q2 2019 to $0.02 million.

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The company reported record pellet sales of 620kMT. The production also hit new record of 518kMT. The robust results were in spite of production disruptions at the Lavington, Meadowbank and Smithers mills. The company’s Entwistle, Alberta and Aliceville, Alabama mills made significant contributions to the high production and shipment volumes. The production at these mills increased by 235% and 37% compared with the year before.

Pinnacle’s Board of Directors approved payment of a dividend of $0.0375 per common share, the payment of which will be made on September 4, 2020.

The management expects production and shipment volumes to increase in Q3 2020.