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Obtala raises timber production in second quarter

Output from its Gabon sawmill was 3,800 cubic metres with June’s average 30% higher than the first three months of the year

Forestry management and agriculture group Obtala Limited (LON:OBT) produced a record amount of sawn timber in the last three months.

Output from its Gabon sawmill was 3,800 cubic metres with June’s average 30% higher than the first three months of the year.

WATCH: Obtala Ltd 'progressing well' with record sawn timber production

Invoiced sales were US$7.3mln and revenues US$5.9mln. Orders currently are US$11mln.

Obtala added its new veneer factory in Gabon is expected to start production this month and this should be the group’s highest margin product.

Elsewhere, delays in export licences in Mozambique have forced a review of strategy in the country, with a cost-cutting programme now being instigated.

Trading revenues have grown in line with timber production, while Obtala is looking for a partner for its agricultural division.

Miles Pelham, chairman, said: "I am pleased to report another quarter of operational growth and improved controls as well as record volumes of sawn timber produced and containers shipped to customers."

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