Resolute Forest Products ramps up production at pellet plant

By Erin Voegele | October 31, 2014

Resolute Forest Products Inc. has released third quarter financial results, reporting progress with the development of its Thunder Bay pellet project.

“We’ve just completed the construction of our Thunder Bay pellet plant, which is now in the ramp-up mode,” said Richard Garneau, president and CEO of Resolute Forest Products, during an investor call. “It will produce 45,000 metric tons of pellet annually under a 10-year supply agreement with the Ontario Power Generation ...This innovative project together with our other initiatives speak to the momentum we are developing in our wood products business.”

The Atikokan Generating Station is the largest 100 percent biomass-fueled power plant in North America. The facility, which was previously fire by coal, officially began operating on biomass in September following a two-year conversion process.  

Resolute Forest Products reported net income excluding special items of $17 million for the quarter, or 18 cents per share. Net income excluding special items for the same period of last year was $29 million, or 31 cents per share. Sales were $1.1 billion for the quarter, down 3 percent from the third quarter of 2013.

GAAP Net loss was $116 million, or $1.23 per share, compared to a net loss of $588 million, or $6.22 per share, during the third quarter of last year. According to the company, last year’s results were significantly affected by a $619 million non-recurring, non-cash income tax charge.