Phaunos Timber Fund reports full-year 2013 loss of US$55.4M compared with US$43.2M loss in 2012; executive chairman pledges focus on disposal of non-core assets, realizing further operating efficiencies, after 'disappointing' results
Wendy Lisney
LONDON
,
April 23, 2014
(press release)
–
Phaunos Timber Fund Limited ("Phaunos" or the "Company"), the Authorised Closed ended investment scheme established to invest in timberland and timber related assets on a global basis, today issues its audited results for the year ended 31 December 2013.
Key Developments and Financial Results
Year to 31 Dec 2013
Year to 31 Dec 2012
Net Asset Value ("NAV")
US$419.0 million
US$488.4 million
NAV per Ordinary Share
US$0.78
US$0.91
Dividends paid
US$ Nil
US$13.4 million
Loss for the year
US$(55.4) million
US$(43.2) million
Loss per Ordinary Share
(10.32) cents
(8.04) cents
The major drivers of change in the Company's NAV included the following:
► Unrealised foreign exchange losses totaling US$25.4 million, which includes losses of US$8.6 million (against the Norwegian Krone and the New Zealand dollar) relating to financial assets; and losses of US$16.9 million (mainly against the Brazilian Real) relating to the translation of wholly-owned subsidiaries.
► Unrealised valuation losses on biological, land, and financial assets totalling US$25.2 million, excluding foreign exchange. Included in this unrealised loss is the significant revaluation loss of US$40.7 million in Green Resources, which was partly offset by the revaluation gain in Matariki of US$24.0 million (see the Explanatory Notes to the Consolidated Statement of Comprehensive Income for further details).
► Net operating losses of US$9.5 million includes revenue from timber operations and other operating income totalling US$12.3 million, less expenses totalling US$21.8 million (see the Consolidated Statement of Comprehensive Income for further details).
► Non-recurring items totalling US$6.5 million which includes the Investment Manager termination and restructure costs of US$5.5 million.
Operational Highlights:
Post year end - Board changes:
Sir Henry Studholme, Executive Chairman of Phaunos, commented on the results: "2013 was a difficult year for the Company, both in terms of markets where we operate and the internal challenges we faced. Despite improvements in cash flow from our harvesting assets, a continued recovery in US and Asian timber markets and the realisation of significant cost reductions, the overall results for the full year were disappointing. Currency fluctuations and soft timber pricing continued to put downward pressure on valuations in our Brazilian investments whilst reappraisals adversely affected parts of our portfolio exposed to East Africa and China. Against this backdrop, in the forthcoming year we intend to increase our focus on the disposal of non-core assets, while maximising value and realising further operating efficiencies across all our investments. I am confident that the strategic and operational review, which has already made significant progress, will provide us with the opportunity to re-position the Phaunos Timber Fund for the long-term benefit of its shareholders."
A presentation for analysts will be held at 09:00 this morning at Citigate Dewe Rogerson, 3 London Wall Buildings, London Wall, EC2M 5SY. Details for analysts unable to attend the presentation are as follows: Dial in: +44 (0) 20 3003 2666; PIN: 2016954.
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.