Woodbois (WBI) , the forestry and timber trading company, on Thursday revealed it had a record third quarter generating revenues of $4.9 million, a 44% increase from 2018’s average quarterly run-rate.
The trading division of the company contributed $3.4 million of revenue in the third quarter, a 70% increase.
Revenues from its own production were $1.5 million, held back by a halt of timber exports from Gabon after a timber-smuggling scandal.
However Woodbois said that shipments “picked up sharply” at the end of the quarter, and that revenues are expected to be recognised in the fourth quarter.
Shares in Woodbois ticked up 2% to 5.05p on Thursday
In September the company installed a sawmill in Mouila that it expects will improve margins by 10% as a result of bringing activities in house and reducing logistics costs.
It also said that trial orders for timber supporting the large-scale infrastructures for a multi-billion dollar Mozambique LNG project may lead to “significant levels of demand” for its timber going forward.
The company added that global demand for African hardwood logs remained consistent “despite the backdrop of an economic slowdown in China”.
Woodbois also advanced its progress in working with key sustainability-driven organisations, announcing on Thursday that it joined the Congo Basin Forest Partnership (CBFP), an international association of forty governments, international organizations, private sector and civil society representatives to enhance the sustainable management of the Congo Basin ecosystem.
The company said that the pressure on African governments to implement sustainable harvesting policies to encourage in-country processing is strongly to its advantage due to their network of suppliers who process timber in-country and because of the importance that its customers attach to using only sustainable hardwood products.
Follow News & Updates from Woodbois here: