According to report provided by Rentech company gross profit for the first quarter was 3.7 million compared to 4.1 million dollars in the same period of 2014. The main factor of falling profits was the decline in raw material processing, as well as a decrease in sales volumes.
The amount of income of Rentech company received for the first quarter was 22.7 million and showed a fall of 13% compared to the same period of 2014. Revenue from activities in the United States and South America also declined by 0.6 million dollars and 2.7 million dollars respectively.
The main factor in the reduction of income in South America was the fall of sales, both locally and in the Asian market. Also introduction to operation of the new chipping line at PAC mill affected to the reduction.
It should be noted that sales volumes of nitrogen by Rentech company in the first quarter of 2015 increased compared to the same period of 2014. This fact is due to higher prices of ammonium sulfate and reduces of natural gas cost.
"Results for the first quarter were generally in line with our expectations for improved profits. At Rentech Nitrogen, margins improved in the first quarter from last year, due to robust demand for ammonia and ammonium sulfate, higher ammonium sulfate prices and lower natural gas prices ", - noted in his speech CEO of Rentech Keith Forman.
According to Keith Forman, both Canadian wood pellet facilities run successfully. Produced Wood pellets have high enrgocontent quality and fully correspond to the requirements for products. Also, Mr. Foreman also mentioned that the commissioning of the Wawa facility also been successful and it was already 12 pellet mills.
The launch and operation of two subsidiaries in Canada also seriously affected to the financial position of the company. Foe to finance the two Canadian wood pellet facilities in April 2015, the company was forced to take an additional $ 7.5 million in credit from GSO Capital.
Rentech company was created in 1981 by Charles Benham and Mark Bohn. Today Rentech company provides wood chipping and wood pellet services and have a lot of facilities in South America and Canada. Earlier this year, the company Rentech together with its wholly owned subsidiary of New England Wood Pellet bought a controlling stake in a corporation Allegheny Pellet. So New England Wood Pellet was the largest player and market wood pellets in the US.
