VANCOUVER, BC – Despite a six-week trucking strike in British Columbia in early 2014 and extreme weather conditions that caused production challenges at its Nova Scotia wood pellet facility, Viridis Energy Inc. reported revenue growth of 143 percent.
Viridis Energy posted a profit of $332,000 on total sales of $5.6 million for the first quarter ended March 31 versus a profit of $336,000 on sales of $2.3 million for the same period a year prior. Compared to the fourth quarter of 2013, total revenue for the first quarter was down 8.2 percent.
The company reported that it shipped its first large cargo of wood pellets to Europe from its Scotia Atlantic facility in Nova Scotia. Viridis Energy Inc. specializes in wood pellets used in the green energy, biofuels sector. Wood pellets, which burn at a high temperature, are an alternative method to heating a home or business.
Scotia Atlantic, which was purchased by Viridis in February 2012 reopened last fall. The plant has the capacity to produce 120,000 tons of wood pellets annually; most of the product is destined for sale in Europe. The plant received recently received more than a half million dollars in capital investment incentives, a portion of which will fund the purchase a truck dumper with a 6,200-cubic-foot hopper.
Also during the first quarter, Viridis Merchants, the trading service arm of Viridis Energy, arranged a second transaction totaling 12,000 tons of wood pellets from an unnamed southeastern United States producer. Veritiesidis said the relationship is expected to generate more than $2.5 million in revenues over the 12-month period by April.
Viridis CEO Christopher Robertson said he expects the positive growth to continue through the remainder of the year, with revenues falling between $30 million and $35 million. “Viridis is well positioned for a breakout year in 2014. Our OPECt is operating at full capacity and Scotia Atlantic Biomass is gaining meaningful progress towards achieving full operating capacity,” Robertson said.
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