The total revenue increased by 18%, compared to the corresponding period of the previous year. Affiliated companies attribute to the financial results.
Viridis Energy Inc. is a Canadian energy company, working in biofuel industry, located in Vancouver. They are occupied in manufacturing and distributing of wood waste biomass fuel. Viridis Energy has developed a wide range of consumers due to a large-scale production and selling of wood pellets, which appeared to be their main business direction.
Wood pellets are the most wide-spread type of pellet fuel http://pellets-wood.com, made of wood, sawdust or woodchips and other waste materials of the kind. During the production, raw materials are being compressed and processed in order to get final product with high efficiency level. Wood pellets are quite convenient for storage and transportation. Modern wood pellet stoves, boilers and other heating-systems provide high-efficient work with less pollutant emissions. However, the carbon dioxide issue is a sore question about wood pellets, but the amount of emissions and their contribution to global warming depends on the type of fuel and mainly on the type of fuel engine, they are used in. All in all, wood pellets are considered to be a good alternative to fossil fuels and natural gas and, thus, they are gaining an increasing popularity nowadays.
Viridis Energy is producing and operating over 300,000 tons of wood pellets yearly, which make it one of the leading companies on the Canadian biomass market. Viridis Energy Inc. operates several sub-companies, such as Okanagan Pellet Company, Viridis Mercants Inc., Scotia Atlantic Biomass Company, thus creating a wide system for distribution and manufacturing.
Viriids Energy Inc. announced the financial results of the company, covering the period of the first half and second quarter 2015. The overall picture is occurred to be quite good. The company's revenue during the first half of the year is said to be $14,5 million, compared to $12,3 million during the compared period in 2015. That means the revenue increases by 2,2 million, or by 18%, and that is surely a good tendency. However, the three month period ended June 30 incurred some revenue decrease by about 14%, compared to the same period a year before. Gross profit was quite a loss: $313,000 for the half of the year, in comparison to $6,000 profit for the same period in the previous year. EBITDA index also appeared to be detriment. Operating expenses altogether increased, but compared to the revenue percentage they scaled down by about 1%.
These results were the total index of all the sub-companies, Viridis Energy operates. Viridis Merchants Inc. increased its sales and contributed to the overall revenue for the most part. In June, 2015 Viridis Merchants announced about their first European Supply agreement. This contract was a landmark event for the company, as it gave them the opportunity to get a footing on the European market, continuing to apply their successful for North America business model. The contract secures up to 20 MTs of premium wood pellets annually and is awaited to give over 4 million euros per year.
On the other hand, this high sales index was offset by decrease in sale on the part of Okanagan Pellet Company Ltd. The reason for that is the plan upgrading process, announced in July, 2015. The plan will be implemented in two years and there will be three stages. The modernization aims in meeting new demands for wood pellets storage and management, in order to guarantee full compliance with National Fire Protection Association and other essential requirements. Currently the plain is on its first stage, and after second stage the authorities of Viridis Energy Inc. expect a significant increase of plant's efficiency. Now, the short fall in this area of business is compensated by other company's subdivisions, as Christopher Robertson, Viridis's chief executive officer remarked. The company also announced a new credit agreement with the Royal Bank of Canada. This credit facility is for $ 875,000, and has been recently increased to $1 million. The money is to fund the first two stages of the upgrade-plan.
Christopher Robertson made the assumption on the report: "The losses incurred during the first half of the year are don't reflect what we expect during the remainder of the year". He emphasized, that Scotia Atlantic Biomass has enough capacity to deliver significant results. The first stage of Okanagan Pellet Company plant is almost accomplished, so they expect the fourth quarter to be profitable.
Recently, Viridis Merchants Inc. has made an agreement to get a $3,000,000 credit with a strategic supplier. The sum is the 100% cost of company's inventory, which they have pledged as credit guarantee.
