BY MISHMA CHAKANYUKA
BORDER Timbers Limited (BTL) posted a 751% increase in revenue to $48,96 million for the three months ended September 30, 2019 driven by improved quality and output from its value-addition plants.
The increase was from a prior year figure of $5,75 million.
“Revenue saw positive improvement compared to prior comparable period mostly driven by improved quality and output from our value addition plants resulting in better average selling prices (ASAP) on lumber,” the company’s judicial manager, Peter Bailey said in the group’s trading update.
During the period, BTL recorded a net loss before tax of $11,65 million from a comparative 2018 profit before tax of $1,53 million owing to unrealised exchange losses.
“Loss for the year is mainly driven by unrealised exchange losses primarily from a foreign loan, the net unrealised exchange loss amounts to $31,42 million,” Bailey said.
Bailey said lumber production and sales volumes were down by 6% and 14% to 15 365 and 15 223 cubic metres respectively.
“Lumber production is lower compared to period prior year due to low production at the Charter sawmill caused mainly by machine breakdown and power outages. The low production had a knock-on effect on sales volumes as this resulted in lower sales compared to prior year,” Bailey added. Treated poles amounted to 2 621 cubic metres down from 3 004 cubic metres recorded in prior year while sales volumes also declined to 3 750 cubic metres from a comparative 4 011 cubic metres in 2018.
“Treated poles reflect a decline in production as focus was placed on specific orders that require re-sizing of stocks on hand. This is reflected in sales being higher than production as these sales were coming out of stock. Demand remains high within the region and an increase in both production and sales is anticipated within the next quarter,” Bailey said.
He said the company would remain under judicial management in the foreseeable future as discussion about the settlement and sharing of the US$25 million that was awarded to the company by an International Centre for Settlement of Investment Disputes (ICSID) tribunal have not been finalised.
The company was placed under judicial management in 2016 after failing to service debts to several financial institutions. After Public Accountants and Auditors Board has given the green light to report using IAS 29 which is a hyperinflation reporting standard, production of financial positions will be restated to factor in annual inflation and exchange rate position.