Pinnacle's Q4 Results Impacted by Sawmill Curtailments, Rail Strike

SEATTLE (Scrap Monster): Canada-based leading pellet producer Pinnacle Renewable Energy reported fiscal 2019 fourth quarter and year-end results. The company’s results were negatively impacted by sawmill curtailments and a rail strike.

For fiscal 2019, the company reported revenue of $377.8 million, compared to $347.4 million of revenue for fiscal 2018. The adjusted EBITDA for the fiscal stood at $47.2 million, compared to $55.1 million in previous fiscal. The industrial wood pellets sale totalled 1.72 metric tonnes (MT), as compared with 1.61 MT sold in 2018.

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In Q4 2019, Pinnacle reported revenue of $91.5 million, compared to $103.7 million a year before. The decline was mainly attributed to reduced production at its B.C. facilities and shipping delays due to CN rail strike during the quarter. The adjusted EBITDA declined from $13.8 million to $11.3 million over the year. The company reported a net loss of $3.2 million for the quarter, compared to a net profit of $7.4 million for the fourth quarter of 2018.

Rob McCurdy, CEO of Pinnacle noted that fiscal 2019 offered up a few challenges for the company. However, the team worked diligently to remedy adverse situations. The company will continue to strengthen and diversify through growth and expansion of its existing facilities and through the construction of new facilities, McCurdy added.