Brazilian forestry company and the leading eucalyptus pulp producer Fibria, reported 48.7% decrease of EBITDA amid 13.4% decrease of net revenues in 1Q2017 y-o-y. According to the announcement, the company’s net revenues accounted for BRL 2,074 million (around USD 643 million), generating EBITDA of BRL 643 million in the period (37% margin).
Marcelo Castelli, Fibria CEO, commented:
“We’re seeing a better environment in the pulp market early this year. Asian demand for hardwood pulp grew 21% in the first two months of the year, according to PPPC data for March. These positive fundamentals created a favorable environment for the price increases we announced early this year.”
In 4Q2016 Fibria decreased EBITDA margin to 36%.
Earlier Fibria informed that it is moving forward the expected date for the completion and startup of the Horizonte 2 Project to build a second pulp production line at its unit in Três Lagoas, Mato Grosso do Sul. Previously scheduled for the fourth quarter of 2017, the mill is now slated to start operations in the third quarter of the year, in September 2017.
The company is a global leader in eucalyptus pulp production. With an annual pulp production capacity of 5.3 million tons, it has industrial units in the cities of Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), and in Eunápolis (Bahia), where it operates the Veracel plant through a joint venture with Stora Enso. Fibria owns a forest area of around 1,056,000 hectares, with 633,000 hectares of planted forests, 364,000 hectares of environmental preservation and conservation areas and 59,000 hectares destined for other uses. The pulp manufactured by Fibria is exported to more than 40 countries.