Source: The Standard
Sustainable Forest Holdings (0723) said it turned around a four-year losing streak for a profit of HK$274.3 million for the year ended March 31, thanks to cooperation with two Brazilian hydropower plants and fair-value gains on its forest assets.
Net profit before interest and taxes hit HK$71.18 million if fair value gains of HK$370 million were excluded, said chief financial officer Sandy Fletcher.
The group secured an exclusive service contract last year in Brazil's Amazon region to fell and clear trees for two hydropower plant sites. While revenue from continuing forestry operations reached HK$263.1 million, the firm discontinued its building materials and real estate business in the first half of the financial year, recording a net loss of HK$23.1 million.
Fletcher said the firm expects to increase its forest resources to more than 1.3 million hectares upon completion of the two acquisitions - both in the Amazon. At present it holds 45,000 hectares in Brazil and 240,000 hectares in Russia.
Fletcher said the firm is also in talks to develop African forests. ELLEN WANG