Pinnacle lifts 1Q pellet sales, sees project delays

摘要

Canadian wood pellet producer Pinnacle Renewable Energy increased its frst-quarter sales by 27pc on the year, but warned about potential delays to upgrade projects and problems with feedstock availability because of the Covid-19 pandemic. Pinnacle sold 510,000t of wood pellets in January-March, up from 402,000t in the frst quarter of 2019. But its sales included “a signifcant volume of high-cost fnished pellet inventory from year end”, it said, as well as third-party pellets purchased to fulfl supply contracts. The third-party pellets made up a smaller proportion of frst-quarter sales than Pinnacle’s own inventory carried over from the fourth quarter of 2019, chief fnancial ofcer Andrea Johnston said. Transport disruptions left more pellet inventory than is typical at ports at the end of December 2019.