FIBRIA: Profit Reaches R$ 280 Million In The 4Q17 Amid Higher Revenue

(RTTNews) - Brazilian paper mill Fibria posted a R$ 280 million (US$ 88.45 million) net income in the fourth quarter of 2017, after a R$ 92 million loss recorded in the same period of 2016. In 2017, Fibria's net income decreased by 34%, to R$ 1.093 billion.

In the fourth quarter of last year, the company's net revenue reached R$ 4.047 billion, growing 60% from a year before, while in 2017 net revenue totaled R$ 11.739 billion, 22% higher than in the previous year.

The company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was at R$ 1.981 billion in the fourth quarter, 2.46 times higher than in the same period of 2016, and accumulated R$ 4.952 billion in 2017, an annual increase of 32%.

Pulp production in the period totaled 1.659 million tons, 36% higher than in the same quarter of the previous year. During 2017, pulp production rose 12%, to 5.642 million tons. Sales of pulp rose 20% in the quarter, to 1.897 million tons, and 13% in the year, to 6.212 million tons.

Both in the fourth quarter and in 2017, the foreign exchange rate variation impacted the company's results. In the last three months 2017, the weakness in the Brazilian real had a negative impact of R$ 475 million in Fibria's financial result.

The company's net debt, measured by its net debt-to-EBITDA ratio in Brazilian real, fell from 3.24 times in the third quarter of 2017 to 2.49 times at the end of last year. In December 2016, the indebtedness in local currency was at 3.06 times.